Men's casual importer Haggar Corp announced results for the third quarter ended June 30, 2005.
For the third quarter of fiscal 2005, Haggar reported net income of $4.8 million on net sales of $119.5 million, or net income of $0.67 per diluted share. This compares to the third quarter of fiscal 2004 when the Company reported net income of $1.7 million on net sales of $116.3 million, or net income of $0.23 on a diluted per share basis.
The 2.7 percent net sales increase in the third quarter of fiscal 2005 is primarily related to an increase in the men's wholesale business and an increase in retail sales due to strong same store sales and the addition of new stores. The Company currently has 82 retail stores.
The increase in earnings per share to $0.67 in the third quarter of fiscal 2005 from $0.23 in the third quarter of fiscal 2004 is primarily due to increased net sales of 2.7 percent and an overall improved gross profit percentage of 28.8 percent, as adjusted for reorganization costs, as compared to a gross profit percentage of 27.7 percent in the third quarter of fiscal 2004.
The increase in gross profit percentage is attributable to an improved product mix and fewer customer allowances. Included in the results for the third quarter of fiscal 2005, as previously reported, is a $2.6 million pre-tax credit to reorganization costs related to a favorable Texas Supreme Court ruling in an employee wrongful termination lawsuit.
This is partially offset by a $0.8 million pre-tax charge to reorganization costs related to the closure of the final two Company-operated sewing facilities, as previously reported. Also included in the results of the third quarter of fiscal 2005 is a $0.5 million pre-tax gain related to the sale of a Company owned apartment. The net impact of these items to the third quarter of fiscal 2005 is $2.3 million pre-tax and $1.4 million after tax, or $0.19 on a diluted per share basis.
marketing@alchempro.com
