Tandy Brands Q3 loss widens despite higher sales

26 Apr '06

2 min read

Accessories retailer Tandy Brands Accessories Inc has announced financial results for the third quarter ended March 31st 2006.

For the third quarter of fiscal 2006, net sales increased 3.4 percent to $45.4 million compared to $43.9 million for the same period last year. It reported a net loss of $5.9 million, or ($0.89) per diluted share, compared to a net loss of $1.0 million, or ($0.16) per diluted share, in the prior year's third quarter.

During the third quarter, the company recorded a pre-tax restructuring charge of $7.1 million, or $0.67 per diluted share, net of tax, due to the write down of inventory and packaging costs associated with the discontinuation of certain product lines in the women's division and payroll related costs associated with staff reductions.

J.S.B. Jenkins, President and CEO said, "We have been taking aggressive steps to improve the overall performance in our women's accessories business.”

Jenkins continued, "We are well positioned to concentrate on our four best performing categories in the women's business which are belts, wallets, handbags and gift accessories. We will develop new business opportunities around these better performing categories and believe there is a strong opportunity to broaden the offering among our department store and mass merchant customer base."

The company expects full year fiscal 2006 sales to be in the range of $215 to $220 million.

On April 19th 2006, the company amended its credit agreement to ensure covenant compliance with respect to the restructuring.

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