R.G. Barry Brands Full Year Earnings Rise 94%

Pickerington,OH–R.G. Barry Corporation today reported a 94% increase in its consolidated net earnings and net revenues for the fiscal year ended June 30.

Net earnings were $14.5 million, or $1.27 a share, up 93.7% when compared to $7.5 million or 67 cents a share, reported one year ago; A year-over-year net sales increase of 20% to $155.9 million from $129.6 million; Gross profit as a percent of net sales at 43.1%, up from 37.2% in the comparable period;

The company said its its full-year results were favorably impacted by the accretive nature of first-time reporting of full-year operating results from its two non-footwear acquisitions, completed during the second half of fiscal 2011; and by a strong performance in its footwear business.

Consolidated Fourth Quarter Results

For the fourth quarter, R.G.Barry’s net sales were up 6% to $25 million versus one year ago; Net earnings of $474,000, or 4 cents a diluted share, swung from a loss of $863,000, or 8 cents per diluted share loss, reported in the fourth quarter of fiscal 2011; Gross profit as a percent of net sales improved 550 bps to 42.9%; and selling, general and administrative expenses were $10.6 million, or 42.6% of net sales, versus $10.1 million or 42.9% of net sales one year ago.

Noting that quarter ended June 30 is traditionally its weakest operating period, R.G.Barry said that the bulk of its fiscal 2012 fourth quarter profit was generated through a revaluation of net deferred tax assets.

The Company remained in a healthy financial position at year-end.

Cash and short-term investments were 69.1% higher than one year ago at $41.7 million; Consolidated inventory was at $21.1 million, down from $25.5 million at the end of fiscal 2011, reflecting a continuing focus on managing inventory flow and order fulfillment; Net shareholders’ equity rose to $74.4 million from $62.5 million one year ago; and long-term debt totaled $20.4 million, down from $24.6 million a year earlier.

“We obviously are delighted with the great year,” said Greg Tunney, president/ceo. “Our flexibility allowed us to post very strong results despite the mixed retail and economic environments in fiscal 2012; and we continue positioning RG Barry for the long-term.”

“This was only the second time in the past 30 years that we have posted profitable results for a June-ending quarter,” said Jose Ibarra, senior vice president and chief financial officer. “Our footwear business was robust throughout the year and when combined with the solid full-year performance of the new accessories segment, fiscal 2012 reached the near record revenue and earnings levels reported today.

“The operating performance goals established when we completed the acquisitions of Foot Petals and baggallini last year were achieved much earlier than we anticipated; and we believe that we are well-positioned strategically and financially to continue building a larger, more profitable business,” he said.

 

Like this? Share it!