While Cutter & Buck reported a decline in total sales in its fiscal 2004 second quarter, the company continued their turnaround as net income jumped 600% due to actions emphasizing profitable sales, reducing costs and improving sourcing and product pricing.
Excluding one-time charges and restatement expenses, CBUK saw Q2 pre-tax profit of $4.7 million from the ongoing wholesale business compared to $2.5 million pretax profit in fiscal Q2 2003.
The reported 630 basis point increase in gross margin included a one-time benefit of approximately $700,000, due to an adjustment of reserve estimates from “sustained improvement” in returns and allowances. CBUK said they expect gross profit to be impacted for the remainder of FY 2004 due to “seasonality and sales mix factors”.
