Danier Leather's net earnings drop in fiscal 2006

20 Jan '06

3 min read

Net earnings during the second quarter were $4.6 million, or $0.70 per share, compared to $7.2 million, or $1.06 per share, in the second quarter last year. Year-to-date net loss was $0.7 million, or $0.11 per share, compared with net earnings of $3.8 million, or $0.55 per share, last year.

Gross profit margin decreased to 51.1 percent compared with 52.4 percent during the second quarter last year. The decrease was mainly experienced in the power centres as more discounts were offered to customers.

During the first half of the year, Danier opened one new shopping mall store at the Niagara Fallsview Casino and one power centre location at Sunridge Mall in Calgary, Alberta.

Also during the quarter, Danier implemented a new point-of-sale system in 5 stores resulting in quicker transaction processing speed and reduced line-ups during busy periods. Full rollout to all stores is expected to begin in March 2006.

The second quarter is historically where Danier earns a majority of its profits and performance this year was below expectations. Sales during Boxing Week, which took place in the third quarter decreased by 9 percent over last year.

Leading Canadian leather garment producer Danier Leather's merchandise is marketed exclusively under the well-known Danier brand name and is available only at its 97 shopping mall, street-front, and power centre stores, or through its corporate sales division and online through its website.

Danier Leather Inc

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