Blair Corporation Q2 net income falls on lower sales
24 Jul '06
4 min read
Results for the second quarter of 2006 were adversely impacted by higher advertising expenses of $5.1 million over second quarter 2005 levels reflecting increased catalog circulation and higher customer acquisitions costs.
The company acquired 89,500 shares of its common stock through open market purchases during the second quarter of 2006 and has remaining authorization as of June 30, 2006 to purchase 310,500 shares.
Net sales for the six months ended June 30, 2006 were $217.7 million, a decrease of 4.7 percent, compared to $228.4 million reported for the six months ended June 30, 2005. Reported sales for 2005 include $1.9 million attributable to sales from our Allegheny Trail and Crossing Pointe businesses which were closed in 2005. Higher unit sales volume was offset by lower average selling prices as a result of continued price point repositioning.
The company reported a net loss for the six months ended June 30, 2006 of $4.6 million, or $1.17 per basic share, compared to net income of $6.7 million, or $0.82 per basic share and $0.81 per diluted share, reported for the first six months ended June 30, 2005.
Blair's e-commerce channel generated $27.0 million and $53.5 million in net sales for the second quarter and first six months of 2006 respectively, compared to $22.8 million and $46.0 million for the second quarter and first six months of 2005.
John Zawacki, President and CEO of Blair said, "Blair actually realized anincrease in customer demand for our products in the second quarter of 2006. This increase is particularly gratifying given the impact of high energy and fuel costs which continued to impact customer discretionary income. Blair is addressing these challenging times within the retail market segment it serves by continuing to implement a series of initiatives geared to enhance the customer's buying experience and to improve product demand. We are dedicated to reinforcing our position as the premier direct marketer to value-conscious consumers and increasing long-term shareholder value."
Blair Corporation employs approximately 1,900 associates (worldwide) and operates facilities and retail outlets in Northwestern Pennsylvania as well as a catalog outlet in Wilmington, Delaware. It, which has annual sales of approximately $450 million, is publicly traded on the American Stock Exchange (Amex: BL).
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