On an ongoing basis, second quarter sales from Kellwood's growing portfolio of better plus price point brands increased by $12 million, or 16 percent to $89 million and at quarter end represented 18 percent of total Company sales versus 16 percent last year. Sales from the Company's popular-to-moderately priced branded and private label business decreased by $7 million, or 2 percent to $399 million versus $406 million last year.
By segment, on an ongoing basis for the second quarter sales were driven by a 9 percent increase in men's sportswear sales to $120.9 million and a 10 percent rise in other soft goods sales to $83.4 million. This was offset by a 4 percent decline in women's sportswear sales to $284.0 million. Within men's sportswear, sales rose due to solid gains in the Company's Smart Shirts operations. Sales growth in the other soft goods category was due to sales growth in both Gerber Childrenswear and American Recreation Products.
Mr. Skinner stated, "The second quarter results were in line with the revised expectations. They increased sales and managed the expenses well, however these improvements were tempered by increased promotional activity resulting in reduced gross profit and operating income versus the prior year.
"Importantly, the second quarter marked a critical period for Kellwood," Mr. Skinner, continued. "They set in place a number of strategic initiatives aimed at improving the performance of company portfolio of lifestyle brands while identifying divisions and brands that no longer fit corporate objectives. While not evident in this quarter's results, they are progressing well toward correcting the fashion and merchandising issues that have affected certain of company brands at retail and are currently experiencing better sell through rates in company Sag Harbor women's sportswear brand. They have received some interest from buyers for the properties they plan to exit and are pursuing each opportunity."