Danier’s sales rise but at what price?
Canadian manufacturer and retailer of leather and suede clothing and accessories Danier Leather has reported improved sales for second quarter ended December 29, however, profits slipped significantly as the company dropped prices to move product during Boxing week (which was included in the third quarter results last year).
Sales for the 13-week period increased 6% ($3.9 million) to $71.5 million from $67.6 million in the second quarter last year, while comparable store sales also improved, rising 8%. On a comparable week basis, which includes Boxing week in both periods, sales actually decreased 8% ($6.4 million) while comparable store sales decreased 7%.
Year-to-date sales increased 5% to $93.6 million while comparable store sales increased 7%. Although again on a comparable week basis, sales fell 8% and comparable store sales decreased 6%.
Profits, meanwhile, slipped to $6 million in the second quarter compared with $7.5 million, while adjusted year-to-date profits fell to $2.3 million from $3.8 million last year.
