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Leather shipments affect jewelry maker Swank Inc

16
Aug '05

John Tulin, President of Swank, which is makers and markets men's jewelry and accessories reported net sales and operating results for the Company's second quarter and six months ended June 30, 2005.

Net income for the quarter ended June 30, 2005 was $89,000 compared to net income of $529,000 for the corresponding quarter last year. For the six-month period, the Company's net loss was $782,000 compared to a net loss of $271,000 for the six months ended June 30, 2004.

Results for last year's second quarter include a non-recurring charge of $589,000, included in interest expense, in connection with the refinancing of the Company's revolving credit line. The net loss for the six-month period ending June 30, 2004 includes a non-recurring net gain of $1,090,000 resulting from the termination of the Company's lease at its former Norwalk, Connecticut manufacturing facility, as well as the $589,000 charge to interest expense associated with the refinancing recorded during the first and second quarters of 2004, respectively.

Net sales for the quarter and six months ended June 30, 2005 declined $2,740,000 or 11 percent, and 2,399,000 or 6 percent, respectively, compared to the same periods last year. The decrease during both the quarter and six months was mainly due to reduced shipments of the Company's belt and personal leather goods merchandise and a less favorable returns adjustment compared to the prior year, offset in part by a significant increase in men's jewelry shipments. Gross shipments of men's jewelry increased 34 percent and 37 percent for the quarter and six-month periods ending June 30, 2005, respectively, compared to the prior year reflecting strong demand across all retail venues.

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