Cutter & Buck reported a $523,000 pre-tax loss for its ongoing wholesale business for the fiscal third quarter ended January 31, compared to a pre-tax $40,000 profit in the year-ago period. Management attributed investments in computer systems and expenses associated with Sarbanes-Oxley compliance, as well as a sharp increase in SG&A expenses as a percent of sales due to increased costs in product development, marketing, and the “transition to a new CEO,” for the loss.
For the nine-month YTD period, CBUK saw pre-tax income for the ongoing wholesale business increase 19.7% to $9.5 million. YTD sales were up 1.8% to $91.7 million.
