Canadian designer, manufacturer, and retailer of leather and suede clothing and accessories, Danier Leather Inc. has reported lower revenues for the fourth quarter and 52 weeks ended June 25, 2005.

Revenues in the fourth quarter decreased by $3.5 million, or 12%, to $25.5 million. The company stated that results for the quarter were impacted by an increase in the litigation provision in connection with a class action lawsuit, which the company has appealed. Adjusted net loss for the fourth quarter of

2005 (before litigation provision and related expenses and loss from discontinued operations) was $0.9 million compared with $0.8 million during the fourth quarter of 2004.

Revenues for fiscal 2005 decreased by 5%, or $8.9 million, to $166.4 million.

Adjusted net earnings for fiscal 2005 (before litigation provision and related expenses and loss from discontinued operations) were $4.8 million compared with $5.5 million during fiscal 2004. Net loss including discontinued operations and litigation provision and related expenses for fiscal 2005 was $0.2 million compared with a net loss of $7.1 million in fiscal 2004.

"The results from our most recent quarter and fiscal 2005 were under plan," said Jeffrey Wortsman, president and CEO of Danier Leather. "We have, however, already begun to implement a number of operational changes that we believe will improve Danier's performance.”