Phoenix Footwear Group, Inc. lost $1.1 million, or 14 cents a share, in the third quarter versus earnings of $60,000, or 1 cent, in the year-ago quarter. Revenues slid 10.9% to $4.9 million. Sales were down 9% for the Trotters brand and off 6% at Softwalk. Gross margins eroded to 27% of sales from 29% of sales in the year-ago period.


Company President and CEO James Riedman said Phoenix continued to experience a soft retail marketplace, particularly among its independent retail customers. “While we began the quarter with a solid backlog, reorders did not materialize as we anticipated, resulting in lower sales,” said Riedman.


On the plus side, Riedman noted that the company continued to open new retail accounts and secure increases in its Spring 2011 future orders.  Expense control efforts have reduced projected SG&A for the upcoming year by over $2 million and a substantially larger credit facility was secured. As of Nov. 9, Phoenix Footwear had $1.5 million and $2.3 million outstanding under the term loan and the revolving credit facility, respectively, and $1.2 million in available borrowing capacity under the revolving credit facility.