Warmer weather impacts Danier sales
Danier Leather has recorded a 3% sales rise for its fourth
quarter ended June 30.
Total company sales period totalled $27.5 million
compared with $26.7 million during the fourth quarter last year.
Impacted by one of the warmest winters on record, sales
for the full year decreased by 6%. Annual sales totalled $148.2 million
compared with $157.6 million during the previous year.
Fourth-quarter gross profit margin was 47.6% compared
with 55.6% during the fourth quarter of last 2011, while gross profit margin
for the full year was 51.8% compared with 54.7%. This decrease was attributed
to higher than anticipated markdowns for outerwear as a result of the
unseasonably warm weather and to increased leather prices.
Danier's accessory sales increased by 38% during the
fourth quarter and represented 35% of total fourth quarter sales compared with
27% of fourth quarter sales in 2011. For the year, accessory sales increased by
11% and represented 32% of total company sales compared with 27%.
In the year ended June 30, Danier placed more emphasis on
growing the higher margin accessory category by expanding its range of
handbags, wallets, briefcases, business accessories and other accessory
categories.
