Men's clothing maker Hartmarx Corporation has reported operating results for its first quarter ended February 28th 2006.
The sales were $144.2 million in 2006 compared to $143.8 million in 2005. Net earnings were $2.6 million or $.07 per diluted share in 2006 compared to net earnings of $4.2 million or $.11 per diluted share in 2005.
Homi Patel, Chairman and Chief Executive Officer of Hartmarx Corporation, said, "We remain comfortable with our previously stated full year guidance of achieving a net earnings increase in the range of 12 – 20 percent on a low to mid-single digit revenue improvement. First quarter revenues and earnings were in line with our expectations and with the cautious outlook expressed in our previous earnings release about the uncertain retail environment in the first half of 2006 caused by ongoing consolidation and other ownership changes in the retail industry.”
“Earnings for the first quarter reflect investments in our most prominent brands, including incremental costs associated with the new Wall Street Hickey-Freeman store and the Honolulu Bobby Jones store that opened in the second half of 2005, as well as additional marketing costs incurred to enhance the Hart Schaffner Marx brand, launch the new "hickey" brand geared to the younger preppie consumer, and other direct-to-consumer expenditures in our luxury and women's product lines.
“We expect to see the benefits of these expenditures starting in the second quarter and accelerating during the second half. The Simply Blue business, acquired at the end of October, 2005, is performing well and contributed approx. $4.8 million in sales and approx. $.01 in earnings per diluted share to first quarter consolidated results; its full year contribution to earnings per diluted share is expected to be in the range of $.05 - $.07. We continue to actively pursue acquisitions that meet our clearly defined strategic criteria and also launch internally generated new businesses," Patel concluded.
marketing@alchempro.com
