Leading apparel company Algo Group Inc announced results for its second quarter ended June 30, 2005.
For the second quarter, sales were $13.1 million compared with $15.9 million for the same period in 2004. The Company recorded a loss from continuing operations of $0.9 million compared to $1.8 million for the same quarter last year and net loss of $0.9 million, or $0.01 per share, compared with $1.9 million, or $0.02 per share, last year.
Sales for the six month period ended June 30, 2005 were $28.7 million, compared with $35.0 million for the same period in 2004, a decrease of $6.3 million. The net loss for the period was $0.8 million or $0.01 per share compared with a net loss of $1.8 million or $0.02 per share for the previous year.
Algo Group President and CEO, Marc Kakon said: "Sales were down compared to last year, however, as a result of cost reduction initiatives taken by the Company, as well as some foreign exchange translation gains and a settlement regarding copyright infringement, the impact was less severe on the bottom line."
Cost of sales and expenses were $13.5 million for the second quarter of 2005, down $3.9 million or 22.4% from $17.4 million for the same period last year. This was a reflection of reduced sales and lower operating costs due to cost reduction actions taken this past year.
Sector Review Ladies Fashion Apparel sales decreased by $0.8 million for the quarter to $2.0 in 2005 from $2.8 millionin 2004, reflecting a decrease in Canadian sales, partially offset by an increase in US sales. The reduction in Canadian sales is not attributable to any specific reason but was general in nature. The increase in sales in the U.S. is the result of initiatives taken during 2005, including the opening of a permanent showroom in New York.
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