Talon International Inc, a leading global supplier of apparel accessories including Talon zippers, fasteners, trim and interlining products, reported financial results for the second quarter ended June 30, 2008.
Second Quarter 2008 Highlights: • Talon zipper sales up 37% vs. Q2 2007 • Net sales for the quarter $17.0 million, up 26% vs. Q2 2007 • Net income of $0.6 million, up 22% vs. Q2 2007
Second Quarter 2008 Financial Results: Net sales for the second quarter of 2008 were $17.0 million, an increase of 26% from $13.6 million in the second quarter of 2007. The revenue reflects continued growth within Southeast Asia and within new brands and program sales of Talon Zipper and Trim products.
Talon Zipper sales increased $3.1 million, or 37%, to $11.4 million in the quarter, as compared to the same period a year ago. Talon Trim sales increased $0.6 million, or 12%, to $5.5 million as compared to the same period a year ago. Tekfit waistband sales were as anticipated, $0.2 million less than in the same period in 2007.
Net sales for the six months ended June 30, 2008 were $27.0 million, an increase of 19% from $22.6 million for the same period in 2007. Talon zipper sales for the first six months of 2008 increased $4.1 million or 31% more than in 2007. Trim product sales for the first six months of 2008 were $9.9 million or $900,000 greater than the same period in 2007; an increase of 10%. Tekfit product sales for the first six months of 2008 were $44,000, a decline of $594,000 from Tekfit sales of $638,000 for the first six months of 2007.
"Our gain in sales for the second quarter and year to date exceeded our expectations," said Lonnie Schnell, Talon's CEO. "The improvement is principally the result of new brand programs within the US and with our sales expansion within Southeast Asia, particularly China, for our Zipper and Trim products.
The demand for a quality global supply alternative within the zipper market is strong, and Talon represents the leading solution for a growing number of major brand retailers. Additionally, the refocusing of our sales force that we announced in March is beginning to reflect the synergies we expected within all of our product lines."
"As anticipated, Tekfit sales were lower year over year," continued Schnell. "However, we are beginning to see modest results from our sales and marketing efforts over the last year, with a growing interest in, and adoption of the technology, by new customers."
Gross profit for the second quarter of 2008 totaled $4.9 million or 29% of sales, as compared to $4.1 million or 30% of sales in same quarter in 2007. Gross profit for the six months ended June 30, 2008 was $7.7 million, an increase of $829,000 over the same period in 2007. The increase in gross profit for the quarter and the six months was attributable to higher overall sales volumes, partially offset by higher manufacturing costs, increased freight and delivery charges, and customer accommodations on deliveries.
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