Danier Leather reports third quarter results
29/04/2008
Danier Leather has announced its unaudited financial results for the third quarter of its current fiscal year, the three-month period ending in March.
The Canadian company, which designs, manufactures and sells leather clothes and accessories, recorded sales for the third quarter that were down by 8% or $3.9 million to $42.4 million from $46.3 million in the third quarter last year. Comparable store sales decreased 6%.
The company said the decrease in sales was because of the timing of Boxing Week, the sales period that immediately follows Christmas. Last year, Boxing Week sales were included in the third quarter whereas this year, Boxing Week sales were included in the second quarter.
On a comparable week basis, which excludes Boxing Week in both periods and compares the 13-week period encompassing December 30, 2007 to March 29, 2008 to the 13-week period encompassing December 31, 2006 to March 31, 2007, sales increased 17% or $6.1 million, and comparable store sales increased by 20%.
Customer traffic during the comparable period increased 14%, conversion rate (percentage of customers that come into the store and make a purchase) increased 14%, but the value of the average sale decreased by 10%.
Owing to a difficult retail environment in the first half of the year, which included “customer price sensitivity”, an increase in Canadian consumers crossing the border to shop for less in the US, and warm weather early in the fall season, Danier Leather put in place “aggressive price reductions” on merchandise featured in its third quarter promotions and also increased markdowns to reduce inventory and better position the company for ordering new inventory for next fall.
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