Home / Knowledge / News / Fashion / Fashion accessories marketer Swank posts fall in sales
Fashion accessories marketer Swank posts fall in sales
Nov '08
John Tulin, Chairman of the Board and Chief Executive Officer of SWANK, INC., today reported net sales and operating results for the Company's third quarter and nine months ended September 30, 2008.

Third Quarter Results:
Net sales during the quarter ended September 30, 2008 decreased 8.3% to $28,685,000 compared to $31,277,000 for the corresponding period in 2007. The recent turmoil in the financial markets, accompanied by the sluggishness in domestic and foreign economies and fear of recession, has hit department store retailers particularly hard.

This has negatively impacted retail sales for a number of our customers which, in turn, has adversely affected our wholesale shipments to them relative to last year. The decrease in net sales during the quarter was mainly due to lower shipments of our personal leather goods merchandise, offset in part by increases in belt shipments.

During last year's third quarter, our personal leather goods business benefited from initial shipments of our new "Tumi" merchandise which was launched in August 2007. Net sales to international customers for our personal leather goods also trended down during the quarter due to lower shipments of branded merchandise to certain licensor affiliates.

The increase in belt net sales resulted principally from higher shipments to certain customers in connection with the introduction of new branded and private brand merchandise collections. Expenses associated with in-store promotional activity, which are accounted for as a reduction to net sales, increased 19.0% during the quarter as we continued to move aggressively to maintain or expand market share during a difficult economy.

Gross profit margin for the quarter ended September 30, 2008 was 31.2% reflecting a slight decline from last year's 31.5%. The decrease was primarily due to lower net sales, which to a large extent, was due to the increase in in-store promotional expenses.

Merchandise cost as a percentage of net shipments actually decreased during the quarter for our belt merchandise mainly due to increased utilization of more economical shipping modes, as well as improved efficiencies generally in our sourcing and product development organizations.

Selling and administrative expenses for the quarter increased $719,000, or 9.0%, and, as a percentage of sales, increased to 30.2% from 25.4% during the same period in 2007.

Selling expenses increased by $391,000, or 6.5%, during the quarter compared to last year, primarily due to higher compensation and related costs associated with the addition of staff to improve our product development and sourcing functions, increased travel expenses, and certain national advertising.

These increases were partially offset part by a reduction in variable sales-related expenses, primarily sales commissions, resulting from the decrease in net sales during the quarter.

Administrative expenses increased $328,000 or 17.0%, during the quarter compared to the same time last year. The increase was mainly due to higher professional fees, travel expense, and depreciation costs.

Must ReadView All

Vietnam's south turns strong South Korean investment hub

Textiles | On 25th Mar 2019

Vietnam's south turns strong South Korean investment hub

South Vietnam has turned a major investment destination for South...

Pic: Lanxess

Textiles | On 25th Mar 2019

Lanxess increasing capacity for benzyl alcohol

Specialty chemicals company Lanxess is increasing production capacity ...

Pic: GII Apparel

Apparel/Garments | On 25th Mar 2019

G-III Apparel net sales up 9.6% to $3.08 bn in FY 2019

Net sales for G-III Apparel Group, a company that sources and markets ...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Union budget 2018-19 will have positive impact on apparel industry

Anavila Misra, Anavila Collection

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Luke Otten, Wigwam Mills Inc

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Maya Simova,

Maya Simova

Inter Expo and Congress Center (IEC) is a prominent exhibition centre in...

Deepprakash Agrawal,

Deepprakash Agrawal

Radhey Weaves is a Surat-based manufacturer of brocade fabrics. MD...

Rikesh Mistry,

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Steve Cole, Xerium Technologies

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Eamonn Tighe, Nature Works LLC

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Paolo Ocleppo, Sandvik Hyperion

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Rajesh Pratap Singh, Rajesh Pratap Singh

Rajesh Pratap Singh
Rajesh Pratap Singh

<div>Ace fashion designer <b>Rajesh Pratap Singh</b> has used Tencel to...

Akta Adani, India Boulevard

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Hemant & Nandita, Hemant & Nandita

Hemant & Nandita
Hemant & Nandita

The designer duo of Hemant &amp; Nandita are known for being inspired by...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

March 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Advanced Search