Second quarter operating earnings were $10.7 million in 2005 compared to $6.5 million in 2004. For the six months, operating earnings improved to $19.2 million from $11.6 million in 2004. The increase reflected a higher gross margin rate of 34.1% for the six months compared to 30.6% in 2004.
Selling, general and administrative expenses increased to $80.6 million from $74.6 million in 2004 on the higher sales, increasing as a percentage of sales to 27.8% from 26.7% in 2004. Interest expense was $3.4 million year-to-date compared to $3.1 million in 2004, principally from higher average borrowing levels.
The Misook business, acquired at the end of July, 2004, contributed approximately $.04 to earnings per diluted share for the second quarter and $.07 for the six months. Total debt at May 31, 2005 was $105.9 million compared to $100.5 million in the year earlier period.
Hartmarx makes business, casual and golf apparel under its own brands including Hart Schaffner Marx, Hickey-Freeman, Palm Beach, Coppley, Cambridge, Keithmoor, Society Brand, Racquet Club, Naturalife, Pusser's of the West Indies, Royal, Brannoch, Riserva, Sansabelt, Exclusively Misook, Barrie Pace and Aura.
In addition, the Company has certain exclusive rights under licensing agreements to market selected products under a number of premier brands such as Austin Reed, Tommy Hilfiger, Kenneth Cole, Burberry men's tailored clothing, Ted Baker, Bobby Jones, Jack Nickltiotion, the Company has certain exclusive rights under licensing agreements to market selected products under a number of premier brands such as Austin Reed, Tommy Hilfiger, Kenneth Cole, Burberry men's tailored clothing, Ted Baker, Bobby Jones, Jack Nicklaus, Claiborne, Pierre Cardin, Perry Ellis, Jeffrey Banks, Jhane Barnes, DKNY Donna Karan New York, Andrea Jovine, Lyle & Scott, Golden Bear and Starington.
marketing@alchempro.com
