Phoenix Footwear Group, Inc. net sales for the first quarter increased 52.8% to $40.3 million, compared to $26.4 million for the first quarter of 2005. Organic sales increased 7.3% in the quarter.
Gross margin in the first quarter was 38.9%, a decrease of 110 basis points from 40.0% last year. Net income for the first quarter was $3.0 million, or 37 cents per diluted share compared to net income of $1.2 million, or 15 cents per diluted share, in the year-ago quarter.
First quarter 2006 net sales for Royal Robbins were particularly strong at $11.2 million, an increase of 29.0%, compared to $8.7 million a year ago, and represented 27.7% of total company sales. The solid performance was driven by robust demand in both domestic and international markets. As previously disclosed, during the first quarter, Phoenix Footwear began selling Royal Robbins directly in Canada and the initial performance exceeded the company’s expectations. Domestically, Royal Robbins opened 20 new accounts for the fall 2006 season. Additionally, as a testimony to Royal Robbins strength, the brand was nominated as REI’s Vendor Partner of the Year.
Management said on a conference call with analysts that Dicks Sporting Goods decided to exit from Royal Robbins, Mountain Hardwear and some other smaller specialty brands, but that the effect to the annual sales number for the brand would be “less than $1 million.” Royal Robbins first started selling into Dicks Sporting Goods last year on a limited basis, because PXG said it was worried about promotional activity. The effect on sales will largely be felt during the second half of the current fiscal year.
>>> It doesnt appear that TNF is getting promoted heavily…
