Home / Knowledge / News / Fashion / Danier Leather Q2 sales drop
Danier Leather Q2 sales drop
22
Jan '09
Sales for the second quarter of fiscal 2009 decreased by 3% to $69.1 million from $71.5 million in the second quarter last year. Comparable store sales decreased by 4%. Year-to-date sales decreased by 2% to $91.7 million and comparable store sales decreased 3%. Financial market concerns, expectations of higher unemployment rates and increased fear of recession contributed to weakened consumer confidence and a highly promotional retail environment which in turn caused customers to delay purchases and wait for additional discounts.

Net earnings during the second quarter of fiscal 2009 were $6.5 million ($1.05 per diluted share) compared with net earnings of $6.0 million ($0.94 per diluted share) during the second quarter last year. Year-to-date net earnings were $2.8 million ($0.44 per diluted share) compared with net earnings of $15.8 million ($2.47 per diluted share) during the first half of last year. Adjusted net earnings(2) for the prior year, which excludes the reversal of the litigation provision of $18.0 million, initial recovery of legal fees of $0.1 million and related income taxes of $4.7 million, were $2.3 million ($0.37 per diluted share).

The first half of last year included the reversal of the litigation provision as a result of the Supreme Court of Canada decision to uphold the unanimous Ontario Court of Appeal ruling that dismissed the class action against the Company and two of its Senior Officers.

Gross profit as a percentage of revenue during the second quarter of fiscal 2009 was 48.0% compared with 50.6% during the second quarter last year. Year-to-date gross profit as a percentage of revenue was 46.7% compared with 50.2% during the corresponding period last year.

The decrease in gross profit margin was mainly due to the decline in the Canadian dollar relative to the U.S. dollar which resulted in higher merchandise costs to the Company since a significant portion of the Company's leather and finished goods inventory is purchased from foreign vendors with payment terms in U.S. dollars. In addition, the decrease in gross profit was also due to a highly promotional retail environment which required higher than planned markdowns in order to generate customer purchases.

Selling, general and administrative expenses ("SG&A") were $23.2 million during the second quarter of fiscal 2009 compared with $26.5 million during the second quarter last year. Year-to-date SG&A was $39.0 million compared with $42.9 million last year.

Danier maintained a strong financial position at the end of the second quarter of fiscal 2009 with approximately $11.2 million in cash, no long-term debt and working capital of $42.3 million. Cash decreased by $4.9 million relative to the end of the second quarter last year due to the timing of settlement of credit card sales for Christmas Eve and Boxing Day, which this year were settled on the Monday after the end of the second quarter of fiscal 2009, whereas last year they were settled prior to the corresponding quarter-end.


Must ReadView All

UK, EU agree to take more time for Brexit deal

Textiles | On 19th Oct 2018

UK, EU agree to take more time for Brexit deal

After an ongoing Brexit summit produced no tangible results, European ...

Courtesy: Pexels

Textiles | On 19th Oct 2018

US announces intent for trade deals with Japan, EU, UK

US Trade Representative Robert Lighthizer recently notified the...

Courtesy: Turtle Limited

Fashion | On 19th Oct 2018

'We are trying to imbibe multi-utility factor in menswear'

Turtle Limited, a leading Indian brand in menswear fashion, is trying ...

Interviews View All

Headhonchos, Indian textile value chain

Headhonchos
Indian textile value chain

'One nation, one tax' is a great concept

Luke Otten, Wigwam Mills Inc

Luke Otten
Wigwam Mills Inc

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

Sanjay Yagnik, Maa Tex Speciality

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Franco Ravazzi,

Franco Ravazzi

Italy-based Tessimenti E Orditi Tinti (T.O.T SRL) specialises in stocking...

Umang Banthia,

Umang Banthia

Established in 2005, SL Banthia Textiles manufactures coated fabrics....

Himanshu Jariwala,

Himanshu Jariwala

J Korin started as a partnership firm with four powerlooms in the textiles ...

Mary-Cathryn Kolb, Brrr°

Mary-Cathryn Kolb
Brrr°

Atlanta-based private start-up Brrr° was founded in 2014 to develop...

Mark Paterson, Technical Absorbents Ltd

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Dr. Rene Wollert, Freudenberg Nonwovens

Dr. Rene Wollert
Freudenberg Nonwovens

Dr. Rene Wollert discusses the current scenario of the global nonwovens...

Rupa Sood and Sharan Apparao, Nayaab

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Anisha Chaudhari, Threads & Shirts

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Priya Somaiya, Usha Social Services

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


October 2018

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

news category


Related Categories:

Advanced Search