Strong Holiday Slipper Sales Step Up R.G. Barry Q2 Profit

Pickerington, OH–R.G. Barry Corp. today reported that its second quarter profit jumped 47.3% as demand for its Dearfoams slippers and other accessories increased during the holiday season.

For the quarter ended Dec. 31, 2011, the company posted net income of about $6.4 million, or 57 cents a share, from $4.3 million, or 39 cents a share, a year ago. Total sales increased 12% to $55.6 million in the quarter.

The company’s slipper and footwear sales have continued to growth in the first half of its fiscal year. In its fiscal first half, footwear sales rose 4.8% to $90.1 million from $86 million in the same period a year ago. And for the first time the company reported first half sales of $15.7 million from its accessories division, which includes acquisitions Foot Petals and baggallini, “yielding a 58.1% gross profit as a percentage of net sales,” the company added.

Looking for Additional Acquisitions

“We achieved our first-half performance and profit objectives, despite a demanding retail environment during the key Christmas selling season,” said Greg Tunney, president/ceo.  “Footwear, which is the largest component of our business and heavily tied to Christmas selling, fully met our revenue and profit expectations for the first half. We also benefitted from the accretive nature and richer margins of our accessories business units, which performed as we had planned.”

Gross margin rose to 42.8% from 36.6% in the first half, too. Company executives said the decision to expand beyond footwear had proved successful, too.

“Less than 12 months after acquiring our two accessories business units, we have returned to a positive net cash position,” said Jose Ibarra, chief financial officer. The quality and level of our consolidated inventories at the half is properly aligned to support our revenue expectations for the remainder of fiscal 2012.”

Tunney also said that “we have now reinitiated our search” for other companies in the accessories categories for additional acquisitions.

“We have both the financial structure and business discipline to identify and acquire brands that will allow us to continue our evolution into a leading year-round provider of a variety of functional and fashionable accessories category products,” Tunney added.

R.G. Barry Corp. also said its board of directors has approved a 14.3% increase in the company’s quarterly cash dividend, from 7 cents a share to 8 cents a share and subsequently declared 8 cents a share cash dividend payable March 5 to common shareholders of record on February 20.

 

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