For the six months ended June 30th 2006 sales were $24,884,000, as compared to sales of $28,695,000 for the same period in 2005. The sales decline for the six months results from the discontinuance of lower-margin sales activities in Mexico and Central America as noted above and the impact of our shift in focus to the rapidly growing apparel markets in Asia as the Company's sales base in Mexico and the US declines.
Gross margins for the six months ended June 30, 2006 improved $3.0 million as compared to the same period in 2005 as lower manufacturing and delivery costs and higher margin sales offset the revenue decline.
"We believe our business opportunities are substantial and with our new organization structure, operating disciplines, and strategic focus we are confident that our plan will result in renewed shareholder confidence and value," Stephen Forte concluded.
Tag-It distributes zippers under its Talon brand name to manufacturers for apparel brands and retailers such as Levi Strauss & Co, Wal-Mart and JC Penney. It also supplies a full range of trim items to manufacturers of fashion apparel, specialty retailers, mass merchandisers, brand licensees and major retailers, including Levi Strauss & Co, Motherworks, Express, The Limited, New York & Co, Victoria's Secret and House of Dereon, among others.
marketing@alchempro.com
