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Leather shipments affect jewelry maker Swank Inc
16 Aug '05
4 min read
The decrease in belt sales during the quarter and year to date period was mainly due to lower shipments of merchandise associated with certain private label retail programs, offset partially by the strong performance of the Company's "Kenneth Cole" merchandise collections. The decline in belt sales for the six-month period this year was also due to a relatively large order that was shipped during last year's first quarter in connection with the launch of a certain new private label program.
The decrease in net sales of the Company's personal leather goods merchandise during both the quarter and six-month period was mostly attributable to a decline in private label shipments to a major customer and, to a lesser degree, sluggishness in certain of the Company's branded programs. However, net sales of the Company's Geoffrey Beene personal leather goods collection increased 22 percent during the six-month period ending June 30, 2005 as the Company shipped new design and packaging concepts to retailers to replace existing merchandise.
Net sales for the quarter and six-months ended June 30, 2005 and June 30, 2004 include the effect of an adjustment recorded each year during the second quarter to reflect the difference between actual customer returns received during the Company's spring selling season (January through June) and the allowance for returns established at the end of the preceding fiscal year.
This adjustment increased net sales by $814,000 for the three-month and six-month periods ended June 30, 2005, compared to $1,703,000 for the comparable periods in 2004. The Company's actual return experience during both the spring 2005 and spring 2004 seasons was better than anticipated compared to the reserves established at December 31, 2004 and December 31, 2003, respectively, principally due to lower than expected returns for men's leather goods and belts. The reserve at December 31, 2004 assumed additional returns would be received during the spring 2005 season in connection with the launch of a new personal leather goods program.
The decrease in net sales of the Company's personal leather goods merchandise during both the quarter and six-month period was mostly attributable to a decline in private label shipments to a major customer and, to a lesser degree, sluggishness in certain of the Company's branded programs. However, net sales of the Company's Geoffrey Beene personal leather goods collection increased 22 percent during the six-month period ending June 30, 2005 as the Company shipped new design and packaging concepts to retailers to replace existing merchandise.
Net sales for the quarter and six-months ended June 30, 2005 and June 30, 2004 include the effect of an adjustment recorded each year during the second quarter to reflect the difference between actual customer returns received during the Company's spring selling season (January through June) and the allowance for returns established at the end of the preceding fiscal year.
This adjustment increased net sales by $814,000 for the three-month and six-month periods ended June 30, 2005, compared to $1,703,000 for the comparable periods in 2004. The Company's actual return experience during both the spring 2005 and spring 2004 seasons was better than anticipated compared to the reserves established at December 31, 2004 and December 31, 2003, respectively, principally due to lower than expected returns for men's leather goods and belts. The reserve at December 31, 2004 assumed additional returns would be received during the spring 2005 season in connection with the launch of a new personal leather goods program.
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