A broad line of performance-oriented athletic shoes marketer Saucony Inc announced financial results for the quarter ended July 1, 2005.
Net sales for the second quarter decreased 8.8 percent, to $40.1 million, compared to $44.0 million in the second quarter of 2004. The Company's gross margin in the second quarter of fiscal 2005 decreased 40.4 percent compared to 41.1 percent in the second quarter of 2004.
Selling, general and administrative expenses as a percentage of net sales increased to 33.4 percent in the second quarter of 2005 compared to 29.2 percent in the second quarter of 2004.
In absolute dollars, selling, general and administrative expenses increased 4.5 percent, due primarily to $802,000 in transaction costs related to the evaluation of their strategic alternatives and the sale of the company and $150,000 in costs related to the settlement of a patent infringement lawsuit, offset in part by lower incentive compensation.
The Company does not receive any tax benefit from the transaction costs as they are not deductible for tax purposes.
Net income decreased 44.4 percent to $1.7 million in the second quarter of 2005, compared to $3.0 million in the second quarter of 2004, primarily because of lower revenues and the transaction costs referred to above.
Diluted earnings per share decreased to $0.22 per Class A share and $0.24 per Class B share in the second quarter of 2005, compared to diluted earnings per share of $0.41 per Class A share and $0.45 per Class B share for the comparable period in 2004.
marketing@alchempro.com
