Phoenix Footwear Group, based on preliminary estimates, anticipates its total net sales to be over $34 million for the second quarter of 2006 versus $15.4 million for the second quarter of 2005, reflecting both organic growth and newly acquired business units. The organic growth rate for net sales is estimated to be in the mid 20% range. In addition, the Company expects to generate net earnings for the quarter in the range of 1 cents to 2 cents per diluted share, before a one-time severance charge of approximately $800,000. With this charge the Company expects to report a net loss of three cents to five cents per share. The Company reported a net loss of 14 cents per share for the same period a year ago.
“The preliminary second quarter results reflect significant progress in our multi-brand strategy,” said James Riedman, Phoenix’s Chairman and Chief Executive Officer. “During the quarter we generated robust organic growth. In fact, four of our five brands grew, led by Altama and Royal Robbins. We continued to expand our distribution, strengthen our management group, streamline operating efficiencies and optimize our manufacturing and sourcing capabilities. We are very excited about the growth opportunities ahead and are committed to further building shareholder value.”
