For the quarter ended Oct. 1, R.G. Barry posted a net income of $6.9 million, or 61 cents a share, up from $4.1 million or 37 cents a share in its first quarter last year.
First quarter sales hiked up 38.5% to $50.2 million, including $42.2 million from its footwear segment, which includes Dearfoams, where sales were up 16.3% from a year ago. Included in the report for the first time was the company’s accessories division, which includes baggallini, the handbag and small leathergoods maker it acquired along with Foot Petals, a shoe insoles maker. The accessories division posted net sales of $8.1 million.
Plans to ‘Expand Our Portfolio of Accessories Brands’
Gross margin increased 5.2 percentage points to 44.3% compared to 39.1% in the first quarter last year helped by the addition of higher margin accessories sales, increased footwear volume and the elimination of costs related to expediting goods to retailers during the first quarter last year.
Greg Tunney, president/ceo said he was optimistic about holiday sales in the company’s second quarter. “We have refined our model, invested in our brands and placed the right products in the right retail venues. Based upon these actions and our long history of successful leadership in accessories footwear, we are confident in our ability to meet the objectives we have set for this segment at retail during the next eight weeks.”
Noting that the company is on the road to “a much broader business in terms of product,” Tunney said that R.G. Barry will relaunch baggallini in early 2012 and that further acquisitions are possible.
“Based upon our current view of fiscal 2012 and the successful integration of our recent acquisitions, we will continue our search later this fiscal year for appropriate businesses to purchase,” he said. “We will continue using the disciplined filter that guided our acquisitions of Foot Petals and baggallini, and we will continue seeking out and identifying only profitable, growing businesses that can help us diversify our business model and expand our portfolio of accessories brands.”