A 3.0% sales gain for the second quarter was not enough to prevent a sharp drop in the bottom line for apparel manufacturer Antigua Enterprises, Inc. Sales increased for the quarter to $13.2 million from $12.8 million last year.
Despite the sales gain, gross margins declined 10 basis points to 38.5% of sales, while SG&A expenses increased 130 points to 27.4%. The slim sales gain, margins decrease, and SG&A expense increase combined to drop net income 22.3% for the quarter, down to $0.98 million from $1.3 million last year. This drop was reflected in diluted earnings per share which fell to 2 cents from 3 cents in the year-ago quarter.
