Phoenix Footwear, the parent of Trotters and SoftWalk, reported sales in the first quarter ended March 30 increased 7.9 percent to $6.7 million compared to $6.3 million for the first quarter of fiscal 2012
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the first three months of fiscal 2013 improved to $510,000 compared to $484,000 for the first three months of fiscal 2012.
Net sales from continuing operations for the first quarter increased $92,000 or 1.6 percent to $5.8 million compared to $5.7 million for the first quarter of fiscal 2012.
Consolidated net earnings from continuing operations for the first
quarter was $268,000 compared to net earnings of $261,000 in the first quarter of fiscal 2012.
For the quarter ended March 30, 2013, net sales increased to $5.8 million or 1.6 percent from $5.7 million when compared to the first quarter of fiscal 2012. Gross sales for the first quarter of fiscal 2013 increased $496,500 or 7.9 percent to $6.7 million compared to $6.3 million for the first quarter of fiscal 2012.
The increase in gross sales for the period was largely driven by a 34.3 percent increase in pairs sold to internet based retailers when compared to the first quarter of 2012. Similar to the Companys own direct to consumer e-commerce sales, the rate of product returns for these internet based customers is significantly higher than for its other customers. As a result, the Company has substantially increased its provision for returns as sales to these internet customers continues to grow.
Gross profit margin for the first quarter of 2013 declined to 36.9 percent compared to 37.5 percent for the first quarter of fiscal 2012. The decrease in the gross profit margin for the quarter was mostly associated with the clearance of discontinued and closed-out styles during the period and a 2.1 percent increase in the standard unit cost that was partly offset by a 2.2 percent increase in the average unit wholesale and 5.2 percent increase in the volume of full-priced pairs sold.
Selling, general and administrative expenses or SG&A, totaled $1.68 million for the first quarter of fiscal 2013, compared to $1.70 million for the first quarter of fiscal 2012. SG&A as a percentage of net sales for the first quarter of fiscal 2013 was 28.9 percent compared to 29.0 percent for the first quarter of fiscal 2012.
The Company reported net earnings from continuing operations of $268,000 compared to net earnings from continuing operations of $261,000 for the first quarter of fiscal 2012. Basic and diluted earnings per share for the first quarter of fiscal 2013 and 2012 was $0.03 and $0.02, respectively.
Earnings before interest, taxes, depreciation and amortization (or EBITDA) from continuing operations for the first three months of fiscal 2013 improved to $510,000 compared to $484,000 in the year ago period.
