Phoenix Footwear Group Inc a multi-brand footwear, apparel and accessories company, announced consolidated results for its first quarter ended March 31, 2007.
Net sales for the first quarter of fiscal 2007 increased 4.3% to $42.1 million compared to $40.3 million for the first quarter of fiscal 2006. The net sales growth was primarily attributable to strong performance of the Altama and Chambers Belt brands, which increased 54.0% and 28.3%, respectively, as well as a positive contribution from Trotters.
Additionally, during the first quarter, the Company started shipping footwear under the American Red Cross brand. The net sales growth was offset significantly by a 46.5% decrease in Tommy Bahama and a 48.6% decrease in H.S. Trask.
For the first quarter of fiscal 2007, the Company reported net income of $414,000, or $0.05 per share, on 8.7 million fully diluted weighted- average shares outstanding. The first quarter of 2007 includes increased corporate expenditures associated with Sarbanes-Oxley compliance, FIN 48 implementation and CEO recruitment fees of approximately $1.0 million, or $0.07 per diluted share.
In the first quarter of 2006, the Company reported net income of $3.0 million, or $0.37 per diluted share, which included a net one-time gain associated with the Altama purchase price adjustment of $1.5 million, or $0.19 per diluted share.
Commenting on the results, Jim Riedman, Phoenix Footwear's Chairman, said, "We returned to profitability in the first quarter and continued the implementation of many key initiatives necessary to successfully execute our growth strategy. We have entered 2007 with a significantly improved outlook across most of our brands."
"The completely redesigned and repositioned Tommy Bahama Footwear brand enjoyed strong sell-throughs and we have recently introduced a new Tommy Bahama Fall 2007 line. Additionally, we started shipping our first footwear product under the American Red Cross brand, which made a modest initial contribution to our top-line during the quarter. Finally, we have embarked upon restructuring the H.S. Trask brand and expect it to start contributing to our growth in the future."
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