Swank's belt merchandise net sales decline during Q1
14 May '08
3 min read
Net sales for the quarter ended March 31, 2008 decreased $270,000, or 1.1%, compared to the quarter ended March 31, 2007. The decrease was mainly due to higher cooperative advertising and in-store markdown allowances, which are recorded as a reduction to net sales, and lower shipments of our jewelry and belt merchandise offset in part by increased shipments of our personal leather goods collections.
The increase in advertising and in-store markdown expenditures resulted from a generally more promotional retail environment during the quarter relative to last year, following a relatively disappointing 2007 holiday season.
The decrease in jewelry net sales was principally due to a reduction in certain private label shipments compared to last year while the increase in our personal leather goods business was due mainly to shipments of our Tumi collections, which were first shipped to retailers during the third quarter of 2007.
Our belt net sales declined 8.5% during the quarter due in part to a decrease in private label shipments to a certain chain store retailer that was partially offset by an increase in Tumi shipments. Our net sales to international customers (including certain military accounts) increased $692,000 or 28.9% during the quarter due mostly to higher shipments of our Tumi and Guess? branded merchandise to licensor retail stores and other licensor-affiliates.
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