While returns for this merchandise category increased 58 percent during the six-month period ending June 30, 2005 compared to the prior year, returns were less than originally anticipated due to heavier in-store promotional expenditures that accelerated retail sales of existing merchandise.
Gross margin as a percentage of net sales for the quarter ending June 30, 2005 of 34.0 percent was about even with last year, while gross margin for the six-month period this year increased by 100 basis points to 33.0 percent from 32.0 percent compared to the same period last year. The increase was principally due to an improved sales mix reflecting increased sales of higher-margin men's jewelry products and better margins for the Company's belt merchandise, offset in part by an increase in certain inventory-related costs.
US based Swank designs and markets men's jewelry, belts and personal leather goods. The Company distributes its products to retail outlets throughout the United States and in numerous foreign countries. These products, which are known throughout the world, are distributed under the names "Kenneth Cole," "Tommy Hilfiger," "Geoffrey Beene," "Claiborne," "Guess?," and "Swank." Swank also distributes men's jewelry and leather items to retailers under private labels.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
