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Shipments of SWANK Tumi accessories collection up
25 Feb '09
5 min read
Annual Results:
Net income for the 12 months ended December 31, 2008 was $2,090,000, or $0.35 per diluted share, compared to net income for the corresponding period last year of $4,947,000, or $0.81 per diluted share.
As discussed above, net income for the quarter and year ended December 31, 2008 included pretax income of $2,000,000 associated with the settlement of a coverage dispute with one of the Company's insurers. Income before taxes for the 12 months ended December 31, 2008 exclusive of the insurance settlement was $1,466,000 compared to $8,529,000 in 2007.
Net sales for the year decreased 11.4% to $113,967,000 compared to $128,615,000 last year. The decrease was due to lower gross shipments of our jewelry, belt and personal leather goods merchandise as well as an increase in in-store markdowns and other promotional expenses.
Shipments for our Tumi accessories collection increased 13.6% compared to the prior year mainly due to spring shipments of this merchandise which was first shipped to retailers during the third quarter of 2007. Although the difficult environment led to lower shipments for a number of our merchandise collections in selected retail channels, certain private label programs continued to perform well.
Net sales in 2008 were impacted by a very challenging retail environment especially during the second half of the year, that led to an increase in promotional activity as retailers sought to maintain sales volume as overall consumer spending declined. We increased our promotional spending as well as we attempted to preserve, and in some cases, take advantage of opportunities to increase our market share.
Gross profit for the 12 months ended December 31, 2008 was $35,835,000, down 16.3% from last year's $42,816,000. Gross profit as a percentage of net sales declined to 31.4% compared to 33.3% for the year-ago period. The decreases in gross profit and gross profit as a percentage of net sales were the result of lower net sales during 2008 and higher inventory control costs, mainly merchandise markdowns, offset, in part, by a reduction in product cost, particularly for our belt merchandise, attributable to efficiencies in our global supply chain.
Selling and administrative expenses for the 12 months ended December 31, 2008 were $33,502,000, reflecting an increase of $864,000, or 2.6%, and as a percentage of net sales, increased to 29.4% compared to 25.4% in 2007.
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Net income for the 12 months ended December 31, 2008 was $2,090,000, or $0.35 per diluted share, compared to net income for the corresponding period last year of $4,947,000, or $0.81 per diluted share.
As discussed above, net income for the quarter and year ended December 31, 2008 included pretax income of $2,000,000 associated with the settlement of a coverage dispute with one of the Company's insurers. Income before taxes for the 12 months ended December 31, 2008 exclusive of the insurance settlement was $1,466,000 compared to $8,529,000 in 2007.
Net sales for the year decreased 11.4% to $113,967,000 compared to $128,615,000 last year. The decrease was due to lower gross shipments of our jewelry, belt and personal leather goods merchandise as well as an increase in in-store markdowns and other promotional expenses.
Shipments for our Tumi accessories collection increased 13.6% compared to the prior year mainly due to spring shipments of this merchandise which was first shipped to retailers during the third quarter of 2007. Although the difficult environment led to lower shipments for a number of our merchandise collections in selected retail channels, certain private label programs continued to perform well.
Net sales in 2008 were impacted by a very challenging retail environment especially during the second half of the year, that led to an increase in promotional activity as retailers sought to maintain sales volume as overall consumer spending declined. We increased our promotional spending as well as we attempted to preserve, and in some cases, take advantage of opportunities to increase our market share.
Gross profit for the 12 months ended December 31, 2008 was $35,835,000, down 16.3% from last year's $42,816,000. Gross profit as a percentage of net sales declined to 31.4% compared to 33.3% for the year-ago period. The decreases in gross profit and gross profit as a percentage of net sales were the result of lower net sales during 2008 and higher inventory control costs, mainly merchandise markdowns, offset, in part, by a reduction in product cost, particularly for our belt merchandise, attributable to efficiencies in our global supply chain.
Selling and administrative expenses for the 12 months ended December 31, 2008 were $33,502,000, reflecting an increase of $864,000, or 2.6%, and as a percentage of net sales, increased to 29.4% compared to 25.4% in 2007.
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SWANK INC
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