Phoenix Footwear stated it will not meet previously issued third quarter or full year EPS guidance of $1.00 to $1.10 due to contract and delivery timing delays as well as several other factors, including weather related production delays at the companys Puerto Rico factory and softness in consumer demand for Trotters latest product line. Phoenix now expects fully diluted third quarter EPS to be “slightly below” the 26¢ per share achieved last year.
“While we will still expect strong year-over-year growth in our 2004 fully diluted GAAP EPS, we are disappointed with our reduced outlook for the current year,” James R. Riedman, Chairman, said. “We fully expect our remaining brands, including SoftWalk, Trask and Royal Robbins to report pro forma organic growth on a combined basis during the current quarter Following several acquisitions during the past two years that more than tripled the size of the Company, our primary focus is on driving organic growth, while maintaining our margins and profitability.”
The majority of the shortfall is due to delivery delays of Altama product to the sovereign nation of Brunei and the Aberdeen Proving Grounds in Hartford County, Maryland. Shipments related to the Brunei contract are now expected to occur in October 2004, while shipments to Aberdeen Proving Grounds are waiting on the U.S. governments refunding of the military facility.
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