Gross profit increased 17.3 percent to $8.8 million in the second quarter of 2005 from $7.5 million in the same quarter of 2004. Gross margins increased 250 basis points to 40.6 percent in the second quarter of 2005 from 38.1 percent in the same period of 2004.
Operating expenses increased 11.9 percent to $6.6 million in the second quarter of 2005 from $5.9 million in the same period of 2004. The increase in operating expenses resulted primarily from design sample expenses, professional fees and other operating personnel expenses. Operating expenses as a percentage of net sales were 30.4 percent in the second quarter of 2005, compared to 29.9 percent in the same period of 2004.
Rizzo concluded, "During the second quarter, company men's division continued to increase the level of productivity in their existing doors and also continued to open new store locations through an increasingly diversified product line. In their women's teen business, they continued to make excellent progress with the repositioning of the brand and believe the enhancement and broadening of their women's line to a fresher, young contemporary look is the right strategic direction for this business going forward."
Year to Date 2005 Results
Net income increased $2.3 million to $4.5 million, or $0.34 per diluted share, for the six months ended June 30, 2005, compared to net income of $2.2 million, or $0.18 per diluted share, for the same period of 2004.
Gross profit increased 27.9 percent to $18.8 million in the six months ended June 30, 2005 from $14.7 million in the same period of 2004. Gross margins increased 490 basis points to 41.3 percent in the six months ended June 30, 2005 from 36.4 percent in the same period of 2004.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
