Leather manufacturer Danier Leather Inc has announced its consolidated financial results for the fourth quarter and 52 weeks ended June 24, 2006.
Sales for the fourth quarter decreased by 13% while comparable store sales decreased 15%. Year-to-date total sales and comparable store sales decreased 11%.
Net loss during the fourth quarter was $4.6 million compared with a net loss of $3.2 million in the fourth quarter last year.
The fourth quarter of this year included $1.4 million of restructuring costs including $0.6 million for severance costs and outplacement counseling related to the head office downsizing that took place during the fourth quarter as well as $0.8 million of additional amortization to write off leasehold improvements and fixtures in connection with the closure of one street-front store, one power centre location and the reduction in size of one shopping mall store.
Danier maintained a strong financial position at year-end with approx. $11.8 million in cash and a working capital balance of $36.4 million. Year-end inventory levels were approx. $3.3 million higher than last year as a result of earlier purchases of fall merchandise.
Two new stores have been opened during the year including one new shopping mall store at the Niagara Fallsview Casino in Ontario and a power centre location at Sunridge Mall in Calgary, Alberta. Two underperforming shopping mall stores whose leases expired were closed during the year.
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