Interviews
News Flash
Tandy Brands announces 4 cents per share dividend
15 Feb '08
3 min read
Tandy Brands Accessories Inc announced financial results for the second fiscal quarter ended December 31, 2007.
For the second quarter of fiscal 2008, net sales were $49.6 million compared to $64.3 million in the second quarter of fiscal 2007. This decline was due primarily to a challenging holiday retail environment. The Company reported a net loss for the quarter of $40.7 million, or $5.94 per diluted share.
The net loss was primarily attributable to noncash asset impairment charges of $36.5 million and restructuring expense of $438,000 which accounted for 98.3% of the pretax loss for the quarter. For the second quarter of fiscal 2007, pretax income was $5.6 million and net income was $3.4 million, or $0.50 per diluted share.
As the result of the Company's strategic review process and due to the overall negative retail environment and general economic conditions, the Company began a comprehensive review of its inventory management policies during the second quarter of fiscal 2008.
The Company concluded there was a need to reduce the amount of inventory the Company warehoused and to focus on reducing total inventory levels within a shorter time frame than had been the Company's prior practice. Consequently, the Company marked down out-of-program and slow-moving inventory in order to accelerate its liquidation and significantly reduce total inventory levels over the next six to twelve months.
The noncash charges included revisingthe value of out-of-program and slow-moving inventory downward by $18.7 million. The Company also recorded a noncash goodwill impairment charge relating to past acquisitions of $16.5 million because an assessment of its implied fair value in light of changing business conditions and reduced sales indicated it was impaired. A noncash intangible impairment charge of $1.3 million related to a customer list acquired with its gift business in 2004 also was recorded in the second quarter.
For the second quarter of fiscal 2008, net sales were $49.6 million compared to $64.3 million in the second quarter of fiscal 2007. This decline was due primarily to a challenging holiday retail environment. The Company reported a net loss for the quarter of $40.7 million, or $5.94 per diluted share.
The net loss was primarily attributable to noncash asset impairment charges of $36.5 million and restructuring expense of $438,000 which accounted for 98.3% of the pretax loss for the quarter. For the second quarter of fiscal 2007, pretax income was $5.6 million and net income was $3.4 million, or $0.50 per diluted share.
As the result of the Company's strategic review process and due to the overall negative retail environment and general economic conditions, the Company began a comprehensive review of its inventory management policies during the second quarter of fiscal 2008.
The Company concluded there was a need to reduce the amount of inventory the Company warehoused and to focus on reducing total inventory levels within a shorter time frame than had been the Company's prior practice. Consequently, the Company marked down out-of-program and slow-moving inventory in order to accelerate its liquidation and significantly reduce total inventory levels over the next six to twelve months.
The noncash charges included revisingthe value of out-of-program and slow-moving inventory downward by $18.7 million. The Company also recorded a noncash goodwill impairment charge relating to past acquisitions of $16.5 million because an assessment of its implied fair value in light of changing business conditions and reduced sales indicated it was impaired. A noncash intangible impairment charge of $1.3 million related to a customer list acquired with its gift business in 2004 also was recorded in the second quarter.
Popular News
Leave your Comments
Editor’s Pick
Esteemed Clients
-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)")
