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Design Within Reach Inc declares Q2 preliminary results

06
Aug '05

San Francisco based home accessories provider Design Within Reach reported preliminary financial results for the second quarter ended July 2, 2005. The results are preliminary due to a delay following the Company's May 2005 systems conversion and pending auditor review.

Net sales for the second quarter of 2005 were $41.9 million, an increase of 49 percent over the $28.2 million recorded in the same period last year. Net earnings for the second quarter of 2005 were $1.4 million, or $0.09 per diluted share on approximately 14.8 million shares outstanding, compared to $806,000, or $0.07 per diluted share on approximately 11.7 million shares outstanding, in the second quarter of 2004. Earnings from operations were $2.2 million compared to $1.4 million the prior year.

For the six months ended July 2, 2005, net sales increased 53 percent to $77.4 million from $50.7 million for the same period in 2004. Net earnings for the first six months of 2005 were $2.3 million, or $0.15 per diluted share, compared to $1.3 million, or $0.11 per diluted share, during the same period in 2004. For the six months ended July 2, 2005, earnings from operations was $3.4 million, compared to $2.2 million in the same six-month period in 2004.

"Company second quarter results continue to demonstrate our ability to expand into new markets and realize the operating leverage of their integrated sales platform and single common inventory," said Wayne Badovinus, President and Chief Executive Officer. "With a total of 51 Studios in operation, they are experiencing robust sales growth, but their strong top-line results continue to be impacted at the gross margin level, primarily due to the negative effect of the Euro exchange rate year-over-year and increased shipping costs."

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