Sportswear retailer Next Inc declares Q2 earning guidance
10 Jul '06
3 min read
An emerging leader in the sportswear and promotional products industry Next Inc announced its fiscal second quarter earnings for the three months ended June 2, 2006.
Core sales, (Collegiate, Automotive, Wildlife, and American Biker) increased to $4,823,634 for the three months ended June 2, 2006 from $3,650,113 for the three months ended May 31, 2005. Total Sales grew 3 percent to $4,823,634 in the second quarter of 2006 from $4,695,583 in 2005, as the prior year quarter included $1,045,470 of sales related to private label and corporate/promotional product that is no longer part of the Company's business focus.
Gross profit (after cost of sales) was $1,823,001 compared to prior year of $1,227,114. The Company had operating income of $280,325 for the second quarter of 2006 compared to prior year of $39,601. The Company had a net profit of $22,896 for the second quarter of 2006 compared to a net loss of $53,545 in the prior year.
Mr. Charles L. Thompson, the Company's CFO, stated, "This quarter is a credit to the hard work of the entire Next team. This quarter saw core sales increase 32 percent for the second quarter compared to prior year. Revenue deductions for retail discounts, charge backs and returns ran 35 percent lower than prior year.
Cost of goods sold was 13 percent lower than the prior year, as a result of a reduction in raw material cost and production cost. In addition, gross profit margin increased significantly for the second quarter from prior year, and also from the first quarter of 2006 as a result of cost reductions/efficiencies, pricing, and higher mix of licensed sales."
marketing@alchempro.com
