Danier reports increased revenues and sales
Canadian leather clothing and accessories retailer, Danier Leather, has announced its 2004 fourth quarter and year-end results.
Revenues for the fourth quarter rose 19% reaching $29.3 million, with a comparable sales increase of 15%. Danier ended the year in a strong position with approximately $23.0 million in cash ($3.31 per share), no long-term debt and a working capital of $44.2 million. Inventory was lower at $29.9 million, compared to $30.7 million last year, as a result of improved merchandise planning and clearance activity.
Gross profit soared by 29% in the fourth quarter to reach $14.8 million (50.5% of revenues), compared with $11.5 million (46.4% of revenues for the same period in 2003. For the full year revenues rose 1% to $178.1 million from $175.5 million on a 4% decline in comparable store sales. This was a result of higher sales and fewer markdowns.
For the full year, gross profit reached $88.1 million (49.4% of revenues), an increase of 2% from $86.7% ((49.4% of revenues) last year.
“While the holiday season and first half of fiscal 2004 were very challenging, business improved considerably in the latter half of the year,” said Jeffrey Wortsman, President and CEO of Danier Leather. “The fourth quarter showed continued positive momentum with healthy increases in both comparable store and total sales. As we close the door on 2004, we remain confident in our proven long-term operating strategy and are committed to continue building Danier into a major worldwide retailer and brand.”
The leather and suede accessories line continued to increase, with sales rising 29% for the fourth quarter and 15% for the fiscal year. Accessories represented 18% of the total company sales, a rise of 2% from 16% in 2003. Four Danier stores were closed in the fourth quarter, but expects to open four new stores in the first half of 2005.
