Retail & wholesale growths perk up Kuhlman's Q2 sales
16 Aug '05
4 min read
The Company continues to target both fill-in locations under a clustering strategy for existing markets and to strategically place new stores in new markets for continued geographic expansion.
Gross profit during the second quarter was 36.5% of sales compared to 39.3% of sales in the prior year's period. The shift in gross profit was due entirely to a decrease in margins associated with the Company's wholesale business. By contrast, gross margin in the Company's retail operations increased significantly. SG&A expenses for the quarter rose to $1.6 million versus $690,000 in the year ago period. This increase reflects both costs associated with becoming a public company as well as continued investment in infrastructure to support the Company's growth plans. As a result of the above factors, the Company's operating loss for the period was $(1.1) million versus $(311,000) in the year-ago quarter.
Mr. Kuhlman continued, "They are excited about the enhancements they have been able to make to their operational capability, including a more robust design and sourcing infrastructure, improving systems, and, more generally, in the strong human resources effort they are making. They continue to strengthen as an organization and they are confident that we are in an excellent position to aggressively fill a void in the specialty retail market for affordable, stylish, tailored clothing. It is their belief that the Kuhlman concept will support a national presence and they are working diligently toward capitalizing on that opportunity."
marketing@alchempro.com
