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Net sales of Swank men's jewelry decline
14 Aug '08
5 min read
The increase in administrative expenses was mainly due to an increase in bad debt expense associated with reserves we recorded during the second quarter in connection with the bankruptcy filings of two of our department store customers, as well as slightly higher employee benefits costs as a result of our investment in product development and sourcing and our Luxury Division noted above, offset in part by a reduction in travel and certain other expenses.
The Company recorded a net loss for the quarter ended June 30, 2008 of $128,000, or $(0.02) per fully diluted share, compared to net income in the comparable prior year's period of $571,000, or $0.09 per fully diluted share.
Six-Month Results
Net sales for the six-month period ended June 30, 2008 totaled $50,473,000, a decrease of $3,771,000, or 7.0%, compared to the corresponding period in 2007. Net sales of our personal leather goods increased 24.0% compared to the same six-month period in 2007, due principally to shipments of Tumi merchandise. Net sales of our men's belt merchandise, however, decreased 13.2% for the 2008 six-month period, and net sales of men's jewelry decreased 22.1% over the same period last year due, in each case for the same reasons described above with regard to our quarterly results.
Net sales were negatively impacted overall during the six-month period by a 53.3% increase in in-store markdowns expenses compared to the same period last year, mainly due to an increase in promotional expenditures by certain of our accounts in response to a more difficult retail environment.
Gross profit margin for the six months ended June 30, 2008 declined by .4% to 31.6% compared to 32.0% in the year-ago period. Gross profit dollars decreased $1,383,000, or 8.0% compared to the same period in 2007. The decreases in gross profit margin and overall gross profit were the result of lower net sales this year, offset, in part, by the reductions in certain of inventory and product-related expenses described above.
Selling and administrative expenses for the six months ended June 30, 2008 increased by $1,026,000, or 6.7%, and as a percentage of net sales, increased to 32.5% compared to 28.4% in the same period in 2007.
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The Company recorded a net loss for the quarter ended June 30, 2008 of $128,000, or $(0.02) per fully diluted share, compared to net income in the comparable prior year's period of $571,000, or $0.09 per fully diluted share.
Six-Month Results
Net sales for the six-month period ended June 30, 2008 totaled $50,473,000, a decrease of $3,771,000, or 7.0%, compared to the corresponding period in 2007. Net sales of our personal leather goods increased 24.0% compared to the same six-month period in 2007, due principally to shipments of Tumi merchandise. Net sales of our men's belt merchandise, however, decreased 13.2% for the 2008 six-month period, and net sales of men's jewelry decreased 22.1% over the same period last year due, in each case for the same reasons described above with regard to our quarterly results.
Net sales were negatively impacted overall during the six-month period by a 53.3% increase in in-store markdowns expenses compared to the same period last year, mainly due to an increase in promotional expenditures by certain of our accounts in response to a more difficult retail environment.
Gross profit margin for the six months ended June 30, 2008 declined by .4% to 31.6% compared to 32.0% in the year-ago period. Gross profit dollars decreased $1,383,000, or 8.0% compared to the same period in 2007. The decreases in gross profit margin and overall gross profit were the result of lower net sales this year, offset, in part, by the reductions in certain of inventory and product-related expenses described above.
Selling and administrative expenses for the six months ended June 30, 2008 increased by $1,026,000, or 6.7%, and as a percentage of net sales, increased to 32.5% compared to 28.4% in the same period in 2007.
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SWANK INC
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