Kellwood ended the quarter with a strong balance sheet with ample liquidity. At July 30, 2005, total inventory was $283 million compared to $347 million at July 31, 2004. Cash and marketable securities increased by $31 million to $293 million from $262 million, at July 31, 2004. The Company's credit agreement was amended to accommodate the impact of the 2005 restructuring plan.
The Company has started the process of repatriating approximately $150 million of foreign earnings in the third and fourth quarters as part of the 2004 American Jobs Creation Act. The $13 million tax benefit relating to this repatriation was recognized in the second quarter.
Sales for the first six months of fiscal 2005 were $1.201 billion, declining 4 percent from $1.247 billion in the first six months of fiscal 2004. Net loss for the first six months of fiscal 2005 was $(66.9) million, or $(2.41) per diluted share, compared to net earnings of $35.3 million, or $1.26 per diluted share in the first six months of fiscal 2004. Included in the net loss for the first six months of fiscal 2005 were impairment, restructuring and related non-recurring charges of $(93.4) million or $(3.36) per share. Partially offsetting this charge was a one-time tax benefit for the repatriation of foreign earnings of $13 million, or $0.47 per diluted share.
For the first six months of fiscal 2005, on an ongoing basis, (excluding the impairment, restructuring and related non-recurring charges,repatriation tax benefit and losses from businesses that the Company plans to exit):