Tandy Brands Accessories declares Q4 2006 results

23 Sep '06

3 min read

Tandy Brands Accessories Inc announced financial results for the fourth quarter and year ended June 30, 2006.

For the fourth quarter of fiscal 2006, net sales increased 9.9 percent to $47.1 million compared to $42.9 million for the same period last year.

The Company reported a net loss of $1.0 million, or ($0.16) per diluted share, compared to a net loss of $2.1 million, or ($0.33) per diluted share, in the prior year's fourth quarter.

The increase in net sales was a result of continued strength in men's and women's belt sales as well as from the sale of inventory from discontinued product categories at lower gross margins.

Selling, general and administrative expenses decreased $922,000, or 5.7 percent, to $15.2 million, compared to $16.1 million for the prior year period, primarily due to the Company's restructuring efforts.

For the 2006 fiscal year, net sales increased 2.8 percent to $227.3 million compared to $221.2 million for the same period last year. The Company reported a net loss of $3.5 million, or ($0.52) per diluted share, compared to net income of $4.0 million, or $0.61 per diluted share reported in the 2005 fiscal year.

The fiscal 2006 results include a third quarter restructuring charge of $0.67 per diluted share, net of tax, from the write down of inventory, packaging and staff reduction costs associated with the discontinuation of certain product lines in the women's division.

The Company also recorded a non-cash charge of $0.14 per diluted share in the fiscal 2006 second quarter for impairment of goodwill associated with the women's mass merchant business. Excluding these two charges, diluted earnings per share for fiscal 2006 would have been $0.29, which was at the top of the Company's previous diluted earnings per share guidance range of $0.22 to $0.29 issued on April 26, 2006.

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