Movie Star swings back to profit in fiscal '06 Q2, H1
13 Feb '06
2 min read
Apparel retailer Movie Star Inc has announced its financial results for the fiscal 2006 second quarter and first half ended December 31st 2005.
As expected, net sales decreased for the fiscal 2006 second quarter to $17,867,000 from last year's $22,990,000. This sales reduction was due to the shipment of a $7,150,000 low margin order in the prior year's second quarter which the company declined to bid on in the current year.
Gross margin as a percentage of sales increased 770 basis points to 29.6 percent for the fiscal 2006 second quarter compared with 21.9 percent in the fiscal 2005 second quarter. Pre-tax income was $1,017,000 in the current quarter as compared to a pre-tax loss of $124,000 in the same quarter last year.
The company recorded net income of $610,000 for the fiscal 2006 second quarter, as compared to a net loss of $75,000 for the second quarter of fiscal 2005. The increase in earnings for the fiscal 2006 second quarter was primarily the result of higher gross margins and lower selling, general and administrative expenses.
Net sales for the fiscal 2006 first half decreased to $31,504,000 from $35,820,000 in the same period a year ago. For the fiscal 2006 first half, the gross margin increased 380 basis points to 28.5 percent from 24.7 percent in the fiscal 2005 comparable period. It recorded net income of $239,000 versus a net loss of $305,000 in the fiscal 2005 comparable period.
Mel Knigin, President and CEO stated, "We are pleased that we have returned to profitability in the first half, despite a number of difficulties brought on by Hurricane Katrina. While business remains challenging for the remainder of fiscal 2006, the initial indications are very positive for our business outlook for the first half of fiscal 2007. We worked hard to control costs and focus on higher margin items, demonstrating our ability to execute our business plan and financial model."
Movie Star Inc produces and sells ladies apparel, including sleepwear, robes, leisurewear and daywear. Current collections include the Cinema Etoile premium line of intimate apparel and the Movie Star line of apparel sold as private label programs.
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