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Sales growth of Ashworth apparel thru collegiate/bookstore channel
11 Sep '07
3 min read
Ashworth Inc a leading designer of on-course golf apparel and golf-inspired lifestyle sportswear, announced unaudited financial results for its third quarter ended July 31, 2007.
Consolidated net revenue for the third quarter ended July 31, 2007 decreased 6.4% to $49.5 million as compared to $52.8 million for the third quarter of 2006.
The Company reported consolidated third quarter net loss of $5.7 million, or $0.39 per share, compared to net income of $0.7 million, or $0.05 per diluted share, for the same quarter of the prior year.
In the third quarter of fiscal 2007, the Company recorded a tax charge of $1.4 million or $0.10 per diluted share to establish a valuation allowance against deferred tax assets.
In the third quarter of fiscal 2007, the Company's consolidated gross margin decreased 270 basis points to 38.2% as compared to 40.9% in the third quarter of fiscal 2006.
The decrease in consolidated gross margin was driven significantly by a decrease in revenue without a commensurate decrease in overhead expenses being applied to cost of sales.
Consolidated selling, general and administrative (“SG&A”) expenses increased 10.1% to $21.8 million for the third quarter of fiscal 2007 as compared to $19.8 million for the third quarter of fiscal 2006.
The increase in SG&A expenses was largely due to increased compensation costs related to retention bonuses, severance, and compensation expense related to the employment and non-compete agreements entered into with the principals of Gekko Brands, LLC on June 4, 2007.
Consolidated net revenue for the third quarter ended July 31, 2007 decreased 6.4% to $49.5 million as compared to $52.8 million for the third quarter of 2006.
The Company reported consolidated third quarter net loss of $5.7 million, or $0.39 per share, compared to net income of $0.7 million, or $0.05 per diluted share, for the same quarter of the prior year.
In the third quarter of fiscal 2007, the Company recorded a tax charge of $1.4 million or $0.10 per diluted share to establish a valuation allowance against deferred tax assets.
In the third quarter of fiscal 2007, the Company's consolidated gross margin decreased 270 basis points to 38.2% as compared to 40.9% in the third quarter of fiscal 2006.
The decrease in consolidated gross margin was driven significantly by a decrease in revenue without a commensurate decrease in overhead expenses being applied to cost of sales.
Consolidated selling, general and administrative (“SG&A”) expenses increased 10.1% to $21.8 million for the third quarter of fiscal 2007 as compared to $19.8 million for the third quarter of fiscal 2006.
The increase in SG&A expenses was largely due to increased compensation costs related to retention bonuses, severance, and compensation expense related to the employment and non-compete agreements entered into with the principals of Gekko Brands, LLC on June 4, 2007.
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