Pickerington, OH—R.G. Barry Corp. today reported that its second quarter profit and sales were down slightly due to the company’s decision to exit certain slipper programs as well as softer holiday sales.
For the quarter ended Dec. 29, the parent of Dearfoams and baggallini posted net income of $5.3 million, or 46 cents a share, compared to $6.4 million, or 56 cents a share a year ago.
Net revenue was $48.5 million compared to net sales of $55.6 million in the year ago period. Analysts’ average estimate expected sales of $55.6 million.
Gross profit as a percent of net sales was 42.4%, up from 41.4% one year ago.
The company said the 13.7% year-over-year decrease in first half net footwear sales to $77.8 million reflected reductions in certain seasonal programs and generally soft July-to-December 2012 retail business in some channels. Footwear net sales for the quarter were $39.5 million versus $47.9 million in the equivalent period last year.
Expanding with KIVA Bags
“We expect to finish our year among the best-performing companies in our category, but fiscal 2013 will be the first time in seven years that we have not posted top-line growth,” said Greg Tunney, president/ceo. “Our decision to exit certain seasonal footwear programs, the elimination of a key men’s slipper program and general retail softness in our replenishment footwear business all will negatively impact our overall annual performance to a greater extent than we originally envisioned.”
In the company’s accessories division, first half sales rose rose 14.1% in both new and existing channels to $18 million compared to $15.7 million a year ago. For the quarter, accessories net sales were up 17.1% to $9 million.
R.G.Barry plans to expand its accessories division with the addition of KIVA, a California-based developer and marketer of outdoor and travel bags and accessories.
“We expect our accessories segment to meet or exceed its growth and profitability objectives for fiscal 2013, but those gains will only partially offset anticipated declines in footwear,” Tunney added.
While noting that the company had been affected by short-term issues, Tunney said, “Our approach to operating this business remains laser-focused on the future.”