At the end of the third quarter of fiscal 2005, the Stride Rite Children's Group operated 264 stores, an increase of 9 percent from the prior year. Sales of Sperry Top-Sider footwear increased 53 percent in the third quarter of fiscal 2005 versus the same period of fiscal 2004. Sales of Keds and Tommy Hilfiger products decreased 9 percent and 27 percent, respectively, in the third quarter of fiscal 2005 from the prior year's comparable period. International sales for the third quarter increased 33 percent versus the same period in 2004.
The Company's gross profit percentage of 39.8 percent in the third quarter of fiscal 2005 increased 3.3 percentage points as compared to the same period last year. Keds, Stride Rite Children's Group and Sperry Top-Sider all had strong gross profit percentage improvements versus last year. Operating expenses in the third quarter of 2005 increased 13 percent, as compared to the same period last year.
The quarter end balance sheet was strong. Accounts receivable was increased 1 percent compared to last year on a 4 percent quarterly sales increase. Inventories of $86 million were up 7 percent compared to the same period of 2004. Net cash and marketable securities were $92 million and the Company had no outstanding debt at the end of the third quarter.
David M. Chamberlain, Chairman and CEO, commented, 'The third quarter was a nice reflection of the strength of their brands and product offerings, even as they work through the Keds repositioning. Children's Group store comps increased 7.4 percent, reflecting the strength of their retail strategy and key product lines. The Children's Group wholesale business was impacted by declines in Tommy Hilfiger and Munchkin.
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