Gross margin for the three months ended July 1, 2006 was $79.7 million, representing a decrease of $19.3 million from the gross margin for the three months ended July 2, 2005. Gross margin percentage for the second quarter of 2006 declined to 37.7%, down from 43.1% for the second quarter of 2005.
The company's net loss for the second quarter of 2006 was $42.0 million, or a loss of $1.40 per diluted share, compared to net income of $69.5 million in the second quarter of 2005.
As previously reported, following a disappointing Fall/Holiday 2005, and Spring 2006 season, the company has moved forward with a series of steps to improve performance and including modifying its merchandise assortments to better meet the needs of its core customers. It anticipate to realize the impact of these changes as new merchandise arrives in stores in the third quarter and fourth quarter, due to the long lead times in its business.
For the six months ended July 1, 2006, total revenues were $420.2 million, compared to $465.7 million in the same period last year. Total revenues for the six-month period included net merchandise sales of $392.2 million, shipping revenues of $16.7 million, licensing royalty revenues of $7.8 million, royalty revenues from foreign joint ventures of $3.2 million, and other revenues of $0.3 million.
Gross margin for the six months ended July 1, 2006 was $128.3 million, representing a decrease of $48.2 million from the gross margin for the six months ended July 2, 2005. Gross margin percentage for the first half of 2006 declined to 32.7%, down from a gross margin percentage of 40.5% for the first half of 2005.
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.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
