Danier Leather gross profit margin up by 1.8%

25 Apr '09

4 min read

Year-to-date gross profit as a percentage of revenue was 45.0% compared with 46.9% during the corresponding period last year. The decrease in gross profit margin was mainly due to the decline in the Canadian dollar relative to the U.S. dollar, which resulted in higher merchandise costs to the Company.

Selling, general and administrative expenses ("SG&A") were $19.3 million during the third quarter of fiscal 2009 compared with $19.1 million during the third quarter of last year. Year-to-date SG&A was $58.3 million compared with $62.0 million last year, a decrease of approximately $3.7 million.

Danier maintained a strong financial position at the end of the third quarter of fiscal 2009 with approximately $24.6 million in cash, no long-term debt and working capital of $41.3 million. Danier's credit facility with CIBC to a maximum amount of $25 million was recently renewed and is committed until June 28, 2010. Inventory at the end of the third quarter of fiscal 2009 decreased by $6.1 million to $27.7 million compared with $33.8 million last year. Book value per outstanding share at the end of the third quarter of fiscal 2009 was $9.80.

Historically during difficult economic times, Danier has been able to capitalize on customer shifts towards merchandise that offers good value. Danier's high quality and exciting merchandise offers both fashionable and classic styling at great prices. Danier believes it is well positioned to continue offering the great value customers have come to know and to expect.

Danier Leather Inc

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