News Flash

RG Barry Corporation Q1 net loss narrows, sales static

10 May '06

3 min read

Citing the continuing positive financial impact of its two-year corporate turnaround, at-home comfort footwear marketer RG Barry Corporation has reported a first quarter net loss of $111,000 compared to a net loss of $901,000 in the first quarter of 2005.

For the quarter, the company also reported:

-- relatively flat consolidated net sales of $17.1 million versus consolidated net sales of $16.9 million in the first quarter last year;

-- consolidated gross profit as a percent of sales at 39.4 percent compared to 40.2 percent in the comparable period of 2005;

-- restructuring and asset impairment charges of $41,000 versus comparable charges of $241,000 in the first quarter last year;

-- lower selling, general and administrative costs of $6.9 million compared to $7.4 million in the first quarter of 2005; and

-- net interest expense of $67,000 down from $85,000 one year ago.

"Our business continues to benefit from the significant changes of the past two years," said Thomas Von Lehman, CEO. "The improvement in SG&A expenses and reduction in interest expense demonstrate that we are maintaining our discipline in managing overhead expenses and working capital.

"Our first quarter performance was generally pretty good. An increase in net sales of approximately 4 percent in our first quarter North American business was offset by slightly lower sales in Europe. First quarter sales in North America would have been stronger had it not been for the impact of an inventory reduction program at our largest customer and the effect of the transition to a private label program by a large department store customer.

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