Next Inc an emerging leader in the sportswear products industry announced its fiscal first quarter earnings for the three months ended March 2, 2007.
Net sales were $3,625,923 for the three months ended March 2, 2007 compared to $4,850,407 for the three months ended March 3, 2006. Gross profit (after cost of sales) was $1,090,847 or 30.1% of net sales compared to prior year of $1,213,894 or 25% of net sales. The Company had a net loss of $390,956 for the first quarter of 2007 compared to prior year net loss of $251,633.
Mr. David Cole, the Company's CFO stated," The decline in net sales had a predictable effect on gross profit dollars, but was partially offset by a 5.1% improvement in gross profit percentage, which resulted from eliminating unprofitable sales as well as ongoing cost reductions in our manufacturing process that have been implemented. This improvement in gross profit percentage is expected to have a favorable impact for the balance of our fiscal year."
Mr. Robert Budd, the Company's CEO stated, "We are not pleased with our first quarter sales volume. However the sales decrease did not come as a surprise. A portion of the decrease is based on the seasonal nature of our business which is historically strong the last six months of the year."
"There were several sales opportunities that we passed on in the first quarter in our ongoing effort to eliminate unprofitable business for the sake of top line growth. Our primary goal is to deliver profit oriented results. That being said, we view the overall decrease in sales as not being indicative of future sales growth potential."
"Our fall bookings are strong as anticipated, and we are encouraged by the efforts of our team's ability to deliver quality programs to our customers while establishing long term growth oriented and sustainable relationships with our customers and prospects."
marketing@alchempro.com
