Apparel marketer Isaacs announces settlement of litigation

15 Feb '06

2 min read

Designer and marketer of the Marithe & Francois Girbaud brand of denim and casual sportswear, Isaacs & Company, Inc disclosed that, without admitting or denying any liability, it had settled the arbitration proceedings commenced against it by a former executive.

Pursuant to the settlement, the company has paid the sum of $1.75 million and has agreed to pay certain additional litigation-related expenses.

The settlement is being recorded as a non-recurring charge in the fourth quarter of 2005 which the company expects will reduce 2005 full-year earnings per share by approximately $0.13.

Peter J Rizzo, Chairman and Chief Executive Officer commented, "This settlement will allow management to focus its time and attention on the strategic development of the company's business.

In the absence of the settlement's one time effects, they believe that the guidance they previously gave with regard to their fourth quarter and full year 2005 results would have remained substantially unchanged."

Based on strong retail sell-through, the company believes its men's business will accelerate beginning in the second quarter.

Despite its current expectation for a roughly flat first quarter earnings performance, the company is now comfortable it will grow earnings at least 10 percent in the first half of fiscal 2006.

For the full 2006 fiscal year, the company expects earnings to grow at a pace of approximately 20 percent.

This compares to prior 2006 fiscal year guidance of diluted earnings per share to grow approximately 10 percent over its 2005 expected results.

I C Isaacs & Company Inc is a designer and marketer of branded casual denim and sportswear based in New York and Baltimore.

The Company offers full lines of casual denim and sportswear for men and women under the Marithe & Francois Girbaud brand in the United States and Puerto Rico.

I C Isaacs

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