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RG Barry reports 4% growth in net sales
08 Sep '09
5 min read
“While the contraction in our gross profit percentage was disappointing, it was not a surprise. We reported a year ago that our fiscal 2009 margins would fall below our normal 40 percent target as a result of the then tight manufacturing capacity in China and skyrocketing oil prices. For our fiscal 2010 buying cycle, oil prices have returned to more traditional levels, manufacturing capacity has loosened, and we expect our fiscal 2010 gross profit percentage to return to a more traditional level,” Mr. Tunney said.
“Our business model generates positive cash flow,” added José Ibarra, Senior Vice President Finance and Chief Financial Officer. “As a result, we did not access our operating line for the third consecutive year. Significant changes in working capital for fiscal 2009 included lower accounts receivable and inventory levels. Our working capital ratio at year-end was 6.2:1 versus 5.7:1 one year ago.
“We are pleased that we have recently extended our unsecured revolving credit facility with The Huntington National Bank of Columbus, a valued banking partnership of more than 50 years. The arrangement is quite favorable and runs through calendar 2011,” Mr. Ibarra said.
Tunney said, “We continue refining our multi-channel distribution strategy. In fiscal 2010, we will increase our investment in Dearfoams brands and focus our new business initiatives on continued growth and increased profitability. Our licensed Levi's accessory footwear will debut primarily in national chain department stores and specialty stores later this fall and Levi's sandals will follow in spring 2010.
“Despite the difficulties facing retailers and suppliers, we are excited about the future and confident in our ability to continue performing at a very high level. We are financially strong. We have a well-developed three-year strategy for profitable growth in both our core and new businesses. We are continuing to aggressively seek out category-appropriate acquisitions. We are expanding our supply base for the future and expect to gain additional market share this year as retailers consolidate their businesses with their best-performing resources,” he concluded.
“Our business model generates positive cash flow,” added José Ibarra, Senior Vice President Finance and Chief Financial Officer. “As a result, we did not access our operating line for the third consecutive year. Significant changes in working capital for fiscal 2009 included lower accounts receivable and inventory levels. Our working capital ratio at year-end was 6.2:1 versus 5.7:1 one year ago.
“We are pleased that we have recently extended our unsecured revolving credit facility with The Huntington National Bank of Columbus, a valued banking partnership of more than 50 years. The arrangement is quite favorable and runs through calendar 2011,” Mr. Ibarra said.
Tunney said, “We continue refining our multi-channel distribution strategy. In fiscal 2010, we will increase our investment in Dearfoams brands and focus our new business initiatives on continued growth and increased profitability. Our licensed Levi's accessory footwear will debut primarily in national chain department stores and specialty stores later this fall and Levi's sandals will follow in spring 2010.
“Despite the difficulties facing retailers and suppliers, we are excited about the future and confident in our ability to continue performing at a very high level. We are financially strong. We have a well-developed three-year strategy for profitable growth in both our core and new businesses. We are continuing to aggressively seek out category-appropriate acquisitions. We are expanding our supply base for the future and expect to gain additional market share this year as retailers consolidate their businesses with their best-performing resources,” he concluded.
R.G. Barry Corporation
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