R.G. Barry's revamp shows up in 41.2% qtly profits

16 Aug '05

3 min read

- Gross profit as a percent of sales in first half also continued to progress at 41.2 percent, up from 29.0 percent in the first half of 2004.

- First half selling, general and administrative expenses declined to approximately $14.2 million from approximately $20.1 million in the first half of 2004.

Net sales for the second quarter and first half, compared to equivalent periods in 2004, included favorable adjustments of approximately $1.1 million related to sales promotions, incentives and returns.

The net benefit of these adjustments in gross profit for the second quarter and first half 2005 was approximately $886,000. These adjustments resulted primarily from better than anticipated sell-through rates during last year's holiday selling season and better than expected

benefits from their selling support initiatives during 2004.
"They obviously are pleased with the second quarter results and believe that the overall improvement in what traditionally is the weakest quarter bodes well for their future," said Thomas M. Von Lehman, President and Chief Executive Officer (CEO). "The strong performance thus far in 2005 is a direct result of the successful implementation of simplified and refocused business model in 2004."

"In looking forward for the full year, they continue to expect 2005 net sales to be relatively flat against last year, and for the positive year-over-year improvements in profit margin and SG&A expenses to continue through the second half."

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