Phoenix Footwear Group, Inc. announces Q1 results
Phoenix Footwear Group, Inc. has announced consolidated results for the first quarter ended April 2, 2005. Net sales for the first quarter increased 41.6% to $26.4 million compared to $18.6 million for the first quarter of 2004.
The company's financial results for the first quarter of 2005 resulted in net income of $1.2 million compared to net income of $1.2 million for the first quarter of 2004. Gross margin for the first quarter of 2005 was 40%, compared to 44% for the first quarter of 2004. During the first quarter of 2005, interest expense totalled $432,000, compared to $170,000 in the comparable prior year period. This increase is primarily related to increased acquisition and working capital debt associated with prior years brand acquisitions and higher interest rates.
James R. Riedman, Chairman, commented: "Our first quarter results trended as expected, highlighted by strong results at our Royal Robbins, SoftWalk and H.S. Trask brands, offset by softness at our Altama and Trotters units. Despite these inconsistent sales results, we continue to post solidly profitable financial returns from our portfolio. We are taking steps to address the issues at Altama and Trotters, while our other units are demonstrating continued momentum in the current quarter. In addition, we expect our pending acquisition of the Chambers Belt Company, which is scheduled to close in the second quarter, to increase our growth and profit potential in 2005 and beyond."
