Domestic (wholesale) sales were $147 mm vs. $185 mm in Q1 2002, declining to 71% of total sales from 76% in the year-ago quarter.
Expect to open 25-30 new doors in 2003, six of which have been opened to date.
Expect Q2 sales to be $200 mm- $210 mm compared top $257 mm last year.
GM was 43.3% vs. 41.9% as owned retail grew to a greater percentage of sales. Domestic wholesale revenue went up 20 BPS.
See margin reductions for the remainder of 2003.
Selling expenses were 8.4% vs. 7.6%. Expect an increase in selling expenses on higher advertising costs. Will increase ad spend in Q2 to 10% from 6.2% in Q1.
General and Administrative expenses increased from 20.3% to 27.4% on higher rent and payroll for 21 new stores not in comp base.
Five largest customers equal 25% of total sales. No customer is more than 10%.
