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Danier Leather presents Q1 fiscal 2006 results
20 Oct '05
2 min read
Toronto based leather garments manufacturer Danier Leather Inc announced its consolidated financial results for the 13 weeks ended September 24, 2005.
Jeffrey Wortsman, President and CEO of Danier Leather stated that they are moving away from their practice of discounting and toward a strategy of communicating value and fashion to build the Danier brand. The benefits of this strategy may take some time to be realized.
Sales for the first quarter decreased 14 percent to $20.8 million, from $24.3 million in the first quarter of fiscal 2005. Comparable store sales decreased 16 percent. EBITDA loss increased to $7.1 million, compared with $3.7 million in the same quarter last year. Net loss was $5.3 million, or $0.81 per share, compared to a loss of $3.4 million, or $0.49 per share, in the first quarter of fiscal 2005.
Gross profit margin decreased to 43.4 percent from 46.9 percent during the same period last year as the hot weather shifted customer's purchases toward lower margin Spring clearance merchandise rather than higher margin Fall garments. Danier maintains a strong financial position with working capital of $36.4 million and no long-term debt. During the first quarter, Danier opened one new shopping mall store at the Niagara Fallsview Casino and one power centre location at Sunridge Mall in Calgary, Alberta.
Wortsman added that the marketing plan they recently launched is intended to position us well for the important holiday shoppingseason. Throughout fiscal 2006, they will continue to implement their strategy to elevate the Danier brand, redefine value, improve the store experience, strengthen relationships with customers, and build new traffic and sales.
Jeffrey Wortsman, President and CEO of Danier Leather stated that they are moving away from their practice of discounting and toward a strategy of communicating value and fashion to build the Danier brand. The benefits of this strategy may take some time to be realized.
Sales for the first quarter decreased 14 percent to $20.8 million, from $24.3 million in the first quarter of fiscal 2005. Comparable store sales decreased 16 percent. EBITDA loss increased to $7.1 million, compared with $3.7 million in the same quarter last year. Net loss was $5.3 million, or $0.81 per share, compared to a loss of $3.4 million, or $0.49 per share, in the first quarter of fiscal 2005.
Gross profit margin decreased to 43.4 percent from 46.9 percent during the same period last year as the hot weather shifted customer's purchases toward lower margin Spring clearance merchandise rather than higher margin Fall garments. Danier maintains a strong financial position with working capital of $36.4 million and no long-term debt. During the first quarter, Danier opened one new shopping mall store at the Niagara Fallsview Casino and one power centre location at Sunridge Mall in Calgary, Alberta.
Wortsman added that the marketing plan they recently launched is intended to position us well for the important holiday shoppingseason. Throughout fiscal 2006, they will continue to implement their strategy to elevate the Danier brand, redefine value, improve the store experience, strengthen relationships with customers, and build new traffic and sales.
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