Swank's belt merchandise net sales decline during Q1
14 May '08
3 min read
John Tulin, Chairman of the Board and Chief Executive Officer of SWANK INC reported net sales and operating results for the Company's first quarter ended March 31, 2008:
Net sales for the quarter ended March 31, 2008 decreased $270,000 or 1.1% to $24,718,000 compared to $24,988,000 for the same period last year. Our loss before income tax during the quarter was $660,000 and our net loss was $411,000 compared to income before tax and net income of $150,000 and $93,000, respectively, for the corresponding period last year.
Commenting on the results for the quarter, John Tulin, Chairman of the Board and Chief Executive Officer, said, "The past three months have been very challenging. Although our gross shipments of merchandise actually increased by about 2% during the quarter, a soft 2007 holiday season led to a sharp increase in in-store markdowns and other pricing adjustments in response to what was a difficult fourth quarter for many retailers.
In addition, as the economy has slowed, we have been promoting much more aggressively in an attempt to drive sales and maintain market share. With retailers scaling back orders to reduce inventories at a time when consumer spending is already being tested, we anticipate that sales and margins could be under pressure for some time. However, our Tumi collection, which we first shipped to customers during the third quarter of 2007, performed well during the quarter and we will maintain our aggressive posture as we seek to expand our share of market through the acquisition of new licenses, product categories or other opportunities."
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