For the three-month period ended January 31, 2007, net sales increased by 43.0% to $98.8 million from $69.1 million during the same period last year. The Company reported net income of $518,000, or $0.03 per diluted share, for the three-month period, compared to a net loss of $2.8 million, or $0.23 per share, during the same period last year.
Morris Goldfarb, Chairman and Chief Executive Officer, said, "Fiscal 2007 was the strongest year in our history. We grew our revenues, increased our profitability, expanded our business into new categories and added new talent to our management team. We are well positioned to continue this success as we look to the years ahead."
Mr. Goldfarb concluded, "We expect the recent successful completion of our public offering, which yielded approximately $30.0 million of net proceeds to us, will help us to pursue new opportunities to create value for our shareholders. We intend to proceed purposefully and thoughtfully to further diversify our business into an all-season, all-category apparel company capable of serving every tier of distribution."
Outlook: The Company is forecasting net sales of approximately $28 million for its first fiscal quarter ending April 30, 2007 compared to $14.4 million in last year's first fiscal quarter. The Company is also forecasting a net loss of $7.7 million to $8.4 million, or between $0.51 and $0.56 per share, compared to a net loss of $8.9 million, or $0.72 per share, in last year's first fiscal quarter. The first quarter historically results in seasonal losses.
marketing@alchempro.com
