Wholesale Non-Apparel net sales increased $19 million, or 11.9 percent, to $174 million, primarily due to increases in our cosmetics, Juicy Couture, Liz Claiborne, Lucky Brand and mid-tier handbags, Monet, Sigrid Olsen, Juicy Couture, Lucky Brand and mid-tier jewelry and mid-tier fashion accessories businesses.
Gross profit increased $18 million, or 3.2 percent, to $576 million in the fourth quarter of 2005 over the fourth quarter of 2004. Gross profit decreased by approx. $13 million in the quarter due to the impact of foreign currency exchange rates, primarily as a result of the weakening of the euro, in our international businesses. Gross profit as a percent of net sales increased to 48.0 percent in 2005 from 46.6 percent in 2004.
The net income in the fourth quarter of 2005 decreased to $78 million, or 6.5 percent of net sales, from $83 million in the fourth quarter of 2004, or 6.9 percent of net sales. Diluted earnings per common share decreased to $0.74 in 2005, from $0.75 in 2004, a 1.3 percent decrease.
Net sales for 2005 were $4.848 billion, an increase of $215 million, or 4.6 percent, over net sales for 2004. The impact of foreign currency exchange rates, primarily as a result of the strengthening of the Canadian dollar, in our international businesses added approx. $13 million in sales during the year.
Wholesale apparel net sales decreased $18 million, or 0.6 percent, to $2.947 billion.
Gross profit increased $156 million, or 7.3 percent, to $2.298 billion in 2005 over 2004, primarily reflecting the increase in net sales, a $6 million increase due to the impact of foreign currency exchange rates, as a result of the strengthening of the Canadian dollar, in our international businesses in addition to the reimbursement of $12 million from a customer of improperly collected markdown allowances. Gross profit as a percent of net sales increased to 47.4 percent in 2005 from 46.2 percent in 2004.
marketing@alchempro.com
