Cutter & Buck signaled its continued drive back to health last week, announcing that it will pay out a dividend for the first time. Shareholders of record on March 26 will receive a dividend of five cents per share.
Company CEO Fran Conley said on a conference call with analysts that the move is designed to show confidence in the brand and the future of the company while rewarding loyal shareholders. The dividend announcement was accompanied by another that the company plans to buy back up to $6 million in CBUK shares.
CBUK continues its long ride back, again narrowing its loss for fiscal third quarter. The company would have swung to a profit in the quarter were it not for $1.2 million in pre-tax expenses related to the 2002 restatement of prior years' earnings.
The net loss for the period ended January 31 includes $40,000 in pre-tax profit from its ongoing wholesale business compared to a pre-tax loss of $1.6 million in the year-ago period. The positive Q3 results were said to be the first third quarter profit for the wholesale business in four years.
The gross margin increase was due primarily to an increased focus on more profitable sales, closely managing product allowances and returns, and improvements in sourcing and product pricing.
Sales were again softer across all channels in Q3.
The company did urge caution in its look ahead over the next six months, pointing to markets that are still soft and long product lead times. They see “pressure on margins” in the fiscal fourth quarter due to “routine, seasonal liquidations”.
