Fashion retailer Swank Inc June net retail sales up 20%
08 Aug '06
3 min read
Included in net sales for both the quarter and six months ending June 30, 2006 and 2005, are annual second quarter adjustments to record the variance between customer returns of prior year shipments actually received in the current year and the allowance for customer returns which was established at the end of the preceding fiscal year.
This adjustment increased net sales by $1,248,000 for the three-month and six-month periods ended June 30, 2006, compared to $814,000 for the comparable periods in 2005. The Company's actual return experience during both the spring 2006 and spring 2005 seasons was better than anticipated principally due to lower than expected returns for men's belts and personal leather goods. During the past few seasons, the Company has reduced customer returns by assisting retailers in promoting excess and discontinued merchandise following the holiday season to accelerate retail sales of these goods.
Gross profit for the quarter ending June 30, 2006 increased $1,317,000 or 18 percent and for the six-month period, increased $2,500,000 or 18 percent, in each case as compared to the corresponding periods last year. Gross profit expressed as a percentage of net sales for the quarter was 33.3 percent compared to 34.0 percent last year and, for the six-month period, increased to 33.2 percent from 33.0 percent compared to the same period in 2005.
Swank designs and markets men's jewelry, belts and personal leather goods. The Company distributes its products to retail outlets throughout the United States and in numerous foreign countries.
marketing@alchempro.com
