Teen apparel retailer Deb Shops Inc reported financial results for the second quarter ended July 31, 2006.
For the second quarter of fiscal 2007, net sales decreased 0.4% to $75.7 million compared to $76.0 million in the second quarter a year ago. Gross profit, which is net of buying and occupancy costs, was $28.5 million resulting in a gross margin of 37.7% for the period. This compares to gross profit of $29.0 million and a 38.2% gross margin in the second quarter of fiscal 2006.
Second quarter net income was $5.9 million compared to $6.6 million in the second quarter of fiscal 2006, while diluted earnings per share was $0.41 versus $0.46 in last year's second quarter.
As of July 31, 2006, the company had $116.0 million in cash and marketable securities, shareholders' equity of $136.8 million, and no debt.
Marvin Rounick, President and CEO of Deb Shops, stated, "Our second quarter sales and earnings were down year-over-year as the challenging economic environment negatively impacted consumer demand at our stores. While we are disappointed with our recent performance, we believe that our operating philosophies are sound and we continue to be optimistic about our longer-term prospects.
“With that said, given the current trends in our business and our relatively strong second half of fiscal 2006, we believe it is prudent to adopt a more conservative outlook for the second half of this fiscal year. Looking ahead, we are committed to taking the necessary steps to improve our business and we remain dedicated to returning increased value to our shareholders,” he added.
marketing@alchempro.com
