Pickerington, OH—R.G. Barry, makers of Dearfoams slippers and baggallini handbags, reported Tuesday that it swung into a third quarter profit due to strong sales increases across all categories.
For the quarter ended March 31, R.G. Barry posted net income of $834,000, or 7 cents a share, up from break-even the same time last year.
Total sales jumped 24.9% to $25.1 million. The company also reported significantly improved” gross margin at 44.6% compared to 39.4% in the equivalent quarter of fiscal 2011.
The company also reported its sales for the first nine months of its fiscal year: total sales increased 23.5% to $130.9 million and earnings jumped 68.1% to $14.1 million or $1.24 a share, versus net earnings of $8.4 million, or 75 cents per share in 2011.
Acquisitions Still Planned
Footwear sales rose 3.4% to $107.2 million in the first nine months. In its accessories division, which includes Foot Petals and baggallini, both acquired in 2011, nine-month net sales were $23.8 million, “yielding a 57.2% gross profit as a percentage of net sales.”
“Both segments of our business are performing at or above our expectations despite the mixed retail and economic environments,” said Greg Tunney, president/ceo.
“This is one of the best March-ending earnings performances in the company’s 65-year history” added Jose Ibarra, senior vice president finance and chief financial officer. “Growth in the department store and mass channels of our footwear business, along with the operating performance of the accessories segment, has increased our confidence that the current business model will allow us to achieve our financial goals.”
Tunney reiterated R.G.Barry’s mission to expand in accessories over the next three to five years.
“We plan to continue increasing our strategic investments in our existing businesses and seeking out and acquiring successful, category-appropriate brands with our long-term objectives in mind,” Tunney said.