Gross profit margin down at Indiana-based footwear retailer
23 Aug '07
3 min read
As of August 4, 2007, the amount that remained available under the existing repurchase authorization was $30.8 million. All repurchases under this program have been made utilizing available cash on hand.
Speaking on the results for the quarter, Mark Lemond, chief executive officer and president said, "Our second quarter sales were significantly affected by a decline in customer traffic. Our comparable store sales and traffic declines through most of the second quarter were similar to those experienced in the first quarter."
"These declines accelerated towards the tail-end of the second quarter and were significantly affected by the shifting of back-to-school dates and sales tax-free days later in August, particularly in Texas and Florida."
"While sales fell short of our original expectations for the second quarter, we have been aggressive in the liquidation of spring and summer product. Consequently, per-store inventories at August 4, 2007 were flat compared with inventories as of August 5, 2006."
Net income for the first half of 2007 was $7.5 million, or $0.55 per diluted share, compared with net income of $10.3 million, or $0.75 per diluted share, last year. Net sales for the first six months increased 1.6 percent to $320.5 million from sales of $315.4 million for the same period last year.
Comparable store sales for the twenty-six week period ended August 4, 2007 decreased 5.4 percent compared to the twenty-six week period last year ended August 5, 2006. The gross profit margin for the first six months of 2007 decreased to 28.1 percent from 29.3 percent last year. Selling, general and administrative expenses, as a percentage of sales, increased to 24.8 percent in the first six months of 2007 from 24.1 percent last year.
marketing@alchempro.com
