Phoenix Footwear said net sales for the fourth quarter ended January 3 fell 15.0% to $16.5 million from $19.4 million in the year ago period. The company reported a net loss of $14.2 million, or $1.74 per share, for the fourth quarter of 2008 as compared to a net loss of $12.8 million, or $1.59 per diluted share in the year ago period.
Included in the net loss for the 2008 fourth quarter were $10.8 million in non-cash impairment charges compared to $6.0 million in impairment charges in the year-ago period. Excluding the charge, net loss for the quarter was $4.1 million.
Gross margins for the fourth quarter improved 90 basis points to 27.0% of net sales from 26.1% of sales in the fourth quarter of 2007.
For fiscal 2008, net sales decreased 9% to $75.1 million from $82.9 million in 2007. Net losses totaled $18.8 million, or $2.31 per share, compared to a net loss of $16.6 million, or $2.07 per share, in 2007.
Notably, footwear sales for the year fell 9.0% to $37.7 million from $41.3 million in 2007. Revenues decreased in all primary footwear channels, including retailers, department stores and catalog vendors. Gross margins for the year improved by two percentage points to 33.0% from 31.0% in 2007.
In other news, Phoenix Footwear recently agreed to sell certain assets of its Chamber Belt Company to Tandy Brands Accessories, Inc.
