Home / Knowledge / News / Textiles / Danier Leather reports fiscal 2010 Q3 results

Danier Leather reports fiscal 2010 Q3 results

04
May '10
Danier Leather Inc. announced its unaudited interim consolidated financial results for the 13 week and 39 week periods ended March 27, 2010.

Q3 Highlights

• Comparable store sales increased by 11%
• Gross profit dollars increased by 36%
• EBITDA increased by $5.0 million
• Cash increased by $7.7 million to $32.3 million from $24.6 million in the third quarter last year
• 1,120,000 Subordinate Voting Shares repurchased under a Substantial Issuer Bid

Net earnings during the third quarter of fiscal 2010 were $2.8 million ($0.48 per diluted share) compared with a net loss of $2.3 million ($0.37 loss per diluted share) during the third quarter last year. The third quarter of last year included staff reduction costs of $1.4 million ($1.0 million after tax, or $0.16 per diluted share) and a goodwill impairment charge of $0.3 million ($0.05 per diluted share). Therefore, adjusted net earnings, which excludes staff reduction costs and the goodwill impairment charge (and income taxes related to the restructuring costs and goodwill impairment charge), was $2.8 million for the third quarter of fiscal 2010 compared with an adjusted net loss of $1.0 million during the third quarter of fiscal 2009.

Sales for the third quarter of fiscal 2010 increased by 8% to $46.9 million from $43.5 million in the third quarter last year. Comparable store sales increased by 11%. Gross profit margin increased by 1,070 basis points to 52.1% from 41.4% resulting in a gross profit dollar increase of 36% or $6.4 million to $24.4 million from $18.0 million during the third quarter last year. The increase in gross profit margin was mainly due to improved merchandise planning and purchasing, a stronger Canadian dollar and reduced markdowns as compared with the third quarter last year.

Selling, general and administrative expenses ("SG&A") during the third quarter of fiscal 2010 increased by $1.1 million. The increase was due to higher performance-based compensation for store and head office staff and increased stock-based compensation primarily resulting from an increase in the Company's share price.

For the year-to-date period, net earnings increased by $7.4 million to $7.9 million ($1.33 per diluted share) compared with net earnings of $0.5 million ($0.07 per diluted share) for the corresponding period last year. As mentioned above, the third quarter of last year included staff reduction costs and a goodwill impairment charge. Therefore, adjusted net earnings for the year-to-date period were $7.8 million ($1.32 per diluted share) compared with $1.8 million ($0.28 per diluted share) during the same period last year.

Year-to-date sales increased by 2% to $137.4 million compared with $135.1 million for the corresponding period last year. Year-to-date comparable store sales increased by 5%. Gross profit as a percentage of revenue for the 39 week period ended March 27, 2010 increased by 770 basis points to 52.7% compared with 45.0% during the same period last year and year-to-date SG&A was $60.5 million compared with $58.3 million last year.


Must ReadView All

Pic: Shutterstock

Textiles | On 6th May 2021

China indefinitely suspends economic dialogue with Australia

The National Development and Reform Commission (NDRC) of China has...

Pic: Shutterstock

Retail | On 6th May 2021

Ireland announces new €5 million COVID-19 Online Retail Scheme

Ireland has launched a new round of the COVID-19 Online Retail Scheme ...

Pic: Shutterstock

Textiles | On 6th May 2021

Cotlook A index expected to drop by 6.18% by June: TexPro

The Cotlook A index is expected to decline by 6.18 per cent in June...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

One thing is certain, online sales will go up

Textile Industry, Head honchos

Textile Industry
Head honchos

Social media critical in regeneration of businesses

Textile Industry, Head honchos

Textile Industry
Head honchos

Main challenges are breakdown of supply chain and shrinkage of manpower

Rajesh Vig & Ritu Vig,

Rajesh Vig & Ritu Vig

Rajesh Vig and Ritu Vig, promoters of the kidswear brand Happy Feet,...

Gus Bartholomew,

Gus Bartholomew

<b>Gus Bartholomew</b>, co-founder of SupplyCompass, explains to <b>Subir...

Mumin Can Eker,

Mumin Can Eker

Maseksport Inc is a readymade garment exporter. Founded in Izmir in 1989,...

Pranesh Sridharan & Berndt Koll, Lenzing

Pranesh Sridharan & Berndt Koll
Lenzing

The Lenzing Group produces Lenzing Lyocell and Modal cellulosic fibres of...

Dave Rousse, INDA

Dave Rousse
INDA

INDA, the Association of the Nonwoven Fabrics Industry, serves hundreds of ...

Shujaul Rehman, Garware Technical Fibres

Shujaul Rehman
Garware Technical Fibres

Garware Technical Fibres Ltd (formerly Garware-Wall Ropes Ltd) is a...

Aprajita Toor, Aprajita Toor

Aprajita Toor
Aprajita Toor

The creations by Aprajita Toor were born out of a deep desire to create...

Sweta Agarwal, A Humming Way

Sweta Agarwal
A Humming Way

A Humming Way (AHW) is inspired by the old-world regalia of Rajasthan...

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...

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


April 2021

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


Advanced Search