According to Stephen L. Gulis Jr., the Company's CFO, "Second quarter 2007 gross margin of 38.2 percent improved 30 basis points over second quarter 2006. Selling and administrative expense as a percentage of revenue was reduced 10 basis points, reflecting a tight control on expenses.
"Strong inventory management programs led to further strengthening of our balance sheet in the second quarter. Inventory levels were down 1.0 percent compared to last year while accounts receivable were up 2.3 percent on revenue growth of 5.0 percent for the quarter. During the quarter, we repurchased 1.2 million shares of stock for $34.4 million and the Company ended the second quarter with a cash balance of $77.0 million."
Krueger concluded, "Continued consumer enthusiasm for our global lifestyle brands is reflected in our order backlog which was up more than 6 percent at the end of the second quarter compared to the second quarter of 2006. On the strength of our operating results, we are increasing the Company's 2007 earnings per share estimate to $1.60 to $1.64, up from our previous estimate of $1.57 to $1.63".
"We are maintaining our revenue guidance with full-year 2007 revenue expected to be at the lower end of our previously announced range of $1.200 to $1.230 billion. These estimates are consistent with our stated long-term objectives of growing annual revenue in the mid to upper-single digit range and delivering double-digit earnings per share growth while investing in initiatives for the future."
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