Ladies apparel retailer Movie Star Inc announced financial results for the fiscal 2006 third quarter and nine months ended March 31, 2006.
For the fiscal 2006 third quarter, net sales decreased to $11,940,000 from last year's $14,659,000. Gross margin, as a percentage of sales, increased 350 basis points to 27.2 percent for the fiscal 2006 third quarter compared with 23.7 percent in the fiscal 2005 third quarter.
Pre-tax income of $462,000 was recorded for the 2006 third quarter, as compared with a pre-tax loss of $1,269,000 in the same quarter last year. In the current year's third quarter, we recorded a non-recurring gain of $1,424,000 from the insurance settlement related to the damage caused by Hurricane Katrina to the Poplarville, Mississippi distribution center. The Company recorded net income of $276,000, or $0.02 per diluted share, for the fiscal 2006 third quarter, as compared to a net loss of $761,000, or a loss of $0.05 per share, for the third quarter of fiscal 2005.
Net sales for the fiscal 2006 nine months decreased to $43,444,000 from $50,479,000 in the same period a year ago. For the fiscal 2006 nine months, the gross margin increased 380 basis points to 28.2 percent from 24.4 percent in the comparable fiscal 2005 period. Pre-tax income of $860,000 was recorded for the 2006 nine months, as compared with a pre-tax loss of $1,777,000 in the period last year.
Included in the pre-tax income for the 2006 nine-month period was the previously mentioned $1,424,000 insurance gain. The Company recorded net income of $515,000, or $0.03 per diluted share, versus a net loss of $1,066,000, or a loss of $0.07 per share, in the fiscal 2005 comparable period.