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Blair Corp to log profits on sourcing & product develop
21 Jul '05
4 min read
Cost of goods sold as a percentage of net sales for the second quarter of 2005 was 45.5 percent compared to 45.9 percent for the second quarter of 2004, reflecting continued success in its efforts to lower overall liquidation costs.
Blair also benefited by negotiating lower merchandise cost from its existing vendors. Blair plans to enlarge its own International Trade Department's product development and sourcing as part of its strategic initiatives to further reduce cost of goods and increase profitability.
During the second quarter, Blair announced plans to initiate a stock tender buyback of approximately 4.4 million shares of its outstanding common stock at $42 per share, at an aggregate price of approximately $185 million. The tender will commence today. Blair also recently closed on a $200 million financing from PNC Financial Services Group, Inc., which will be used to finance, in part, the stock tender buyback in conjunction with $40 million of Blair's cash reserves.
"Blair intends to pay down this credit facility from PNC with the proceeds received from the previously announced sale of its credit portfolio to Alliance Data Systems Corp. With their tender commencing today, they are confident that the repurchase of more than half of their shares, in conjunction with remaining an independent public company, will maximize future shareholder value," said Bryan Flanagan, senior vice president and Chief Financial Officer.
Blair's e-commerce channel generated $48.6 million in gross sales demand in the first six months of 2005, compared to $45.6 million in the first six months of 2004. The year-over-year increase was achieved despite significantly lower Crossing Pointe e-commerce gross sales demand.
Blair also benefited by negotiating lower merchandise cost from its existing vendors. Blair plans to enlarge its own International Trade Department's product development and sourcing as part of its strategic initiatives to further reduce cost of goods and increase profitability.
During the second quarter, Blair announced plans to initiate a stock tender buyback of approximately 4.4 million shares of its outstanding common stock at $42 per share, at an aggregate price of approximately $185 million. The tender will commence today. Blair also recently closed on a $200 million financing from PNC Financial Services Group, Inc., which will be used to finance, in part, the stock tender buyback in conjunction with $40 million of Blair's cash reserves.
"Blair intends to pay down this credit facility from PNC with the proceeds received from the previously announced sale of its credit portfolio to Alliance Data Systems Corp. With their tender commencing today, they are confident that the repurchase of more than half of their shares, in conjunction with remaining an independent public company, will maximize future shareholder value," said Bryan Flanagan, senior vice president and Chief Financial Officer.
Blair's e-commerce channel generated $48.6 million in gross sales demand in the first six months of 2005, compared to $45.6 million in the first six months of 2004. The year-over-year increase was achieved despite significantly lower Crossing Pointe e-commerce gross sales demand.
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