For the 39 weeks ended April 28, 2007, the Company reported total revenues of $3.4 billion compared to $3.1 billion in the prior year. Comparable revenues increased 6.6 percent. Operating earnings for the 39 weeks ended April 28, 2007 were $444.6 million compared to $307.7 million for the comparable period a year ago. Adjusted operating earnings for the 39 weeks ended April 28, 2007 were $494.6 million compared to $408.8 million for the comparable period a year ago, an increase of 21.0 percent.
Other Items: As a result of the acquisition, the Company recorded costs related to the amortization of customer lists and favorable lease commitments in the third quarter of fiscal year 2007 and 2006 of approximately $18.1 million and $18.0 million, respectively. These amortization costs totaled $54.2 million and $41.5 million for the 39 weeks ended April 28, 2007 and April 29, 2006, respectively.
In addition, the Company recorded other income of approximately $4.2 million in the first quarter of fiscal year 2007 which represents proceeds it received from its investment in an internet retailer. The Company also recorded other non-cash items related to various valuation adjustments that resulted in a credit of approximately $0.5 million in the third quarter of fiscal year 2006 and charges totaling $36.0 million for the 39 weeks ended April 29, 2006.
Also, prior to consummation of the acquisition, the Company recorded in the first quarter of fiscal year 2006 transaction and other costs of approximately $23.5 million.
In December 2006, the Company completed both the purchase of the minority interest and the sale of Kate Spade LLC for pretax net cash proceeds of approximately $62.1 million. Also, the Company sold its majority interest in Gurwitch Products L.L.C. in July 2006 for pretax net cash proceeds of approximately $40.8 million. The Company's financial statements reflect Kate Spade LLC and Gurwitch Products L.L.C. as discontinued operations for all periods presented.
marketing@alchempro.com
