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Kuhlman Company FY sales jumps 44% to $6.4m in 2005
03 Apr '06
3 min read
Kuhlman Company Inc, a specialty retailer and wholesale provider of both men's and women's apparel, has reported its fiscal 2005 results.
Sales for 2005 rose 44.0 percent to $6.4 million versus $4.4 million in the prior year. Revenues from the company's retailing operations grew at a rate of 117 percent, to $6.1 million from $2.8 million in fiscal 2004. The increase in sales was largely driven by the opening of 32 new stores, 20 of which were opened in the fourth quarter.
Scott Kuhlman, Chairman, said, "Fiscal 2005 was an exciting and productive year for our company. We made excellent progress in developing our merchandise assortment, particularly with respect to our women's line. Further, we believe that we have fostered and maintained a clear and compelling brand identity. While we are not satisfied with our financial results, our focus in the year ahead will be to improve our profitability and to position the Company for the growth we see ahead of us."
Gross margin for the full year was (11.9 percent) compared to 22.9 percent in the prior year. The decrease in gross margin was due primarily to heavy clearance activity in the fourth quarter as well as the booking of an inventory valuation reserve of $601,000.
Store operating expenses for 2005 increased to $3.4 million from $1.2 million due primarily to costs associated with the newly opened stores. General and administrative expenses for the year rose to $4.5 million versus $1.8 million in the prior year. This increase reflects significant expense to implement systems infrastructure, and ongoing investment in the company's management team and staffing, as well as costs associated with being a public company.
Sales for 2005 rose 44.0 percent to $6.4 million versus $4.4 million in the prior year. Revenues from the company's retailing operations grew at a rate of 117 percent, to $6.1 million from $2.8 million in fiscal 2004. The increase in sales was largely driven by the opening of 32 new stores, 20 of which were opened in the fourth quarter.
Scott Kuhlman, Chairman, said, "Fiscal 2005 was an exciting and productive year for our company. We made excellent progress in developing our merchandise assortment, particularly with respect to our women's line. Further, we believe that we have fostered and maintained a clear and compelling brand identity. While we are not satisfied with our financial results, our focus in the year ahead will be to improve our profitability and to position the Company for the growth we see ahead of us."
Gross margin for the full year was (11.9 percent) compared to 22.9 percent in the prior year. The decrease in gross margin was due primarily to heavy clearance activity in the fourth quarter as well as the booking of an inventory valuation reserve of $601,000.
Store operating expenses for 2005 increased to $3.4 million from $1.2 million due primarily to costs associated with the newly opened stores. General and administrative expenses for the year rose to $4.5 million versus $1.8 million in the prior year. This increase reflects significant expense to implement systems infrastructure, and ongoing investment in the company's management team and staffing, as well as costs associated with being a public company.
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