Apparel supplier Movie Star net sales drops 25.8% for Q4
26 Aug '05
3 min read
Leading apparel maker & supplier Movie Star Inc announced financial results for the three months and full year ended June 30, 2005. Net sales for the fiscal 2005 fourth quarter decreased 23.5 percent to $8,054,000 compared with $10,524,000 for the same period last year and net sales for the full year increased 9.0 percent to $58,533,000 from last year's $53,691,000.
For the 2005 fourth quarter, the Company recorded a net loss of $2,056,000, or $0.13 per share, compared with a net loss of $506,000, or $0.03 per share in the same period last year. The quarterly gross margin decreased to 23.5 percent from 25.8 percent in the 2004 comparable period. The lower gross margin resulted primarily from the sales contribution of the Sidney Bernstein & Son division, whose lingerie line sells at a lower gross margin than Movie Star's core line.
Selling, general and administrative ("SG&A") expenses in the fiscal 2005 fourth quarter increased to $5,147,000 from last year's $3,557,000. Included in the SG&A expenses for fiscal 2005 were the additional expenses for the Sidney Bernstein & Son division, as well as charges approximating $745,000 for the closing of our Petersburg, Pennsylvania distribution center, the termination of their prior Chairman's services in connection with their consulting agreement with him and costs associated with personnel changes.
For fiscal 2005, the Company recorded a net loss of $3,122,000, or $0.20 per share, compared with net incomeof $128,000, or $0.01 per diluted share, reported last year. For fiscal 2005, the gross margin decreased to 24.3 percent from last year's 30.0 percent. The decline in gross margin was due to the addition of Sidney Bernstein & Son and a shipment of a $7,800,000 low margin order that occurred primarily in the second quarter. SG&A expenses increased to $19,024,000 from last year's $15,824,000. Included in the SG&A expenses for fiscal 2005 were the additional expenses for the Sidney Bernstein & Son division, the $745,000 charge described above and in fiscal 2004 there was a special charge of $1,084,000.
marketing@alchempro.com
