R.G. Barry Corporation reported net sales in its fiscal fourth quarter ended June 30 were $25.0 million, up 6 percent versus one year ago. Net earnings of $474,000, or 4 cents per diluted share, swung from a
loss of $863,000, or 8 cents per diluted share loss, reported in
the fourth quarter of fiscal 2011.
Gross profit as a percent of net sales improved 550 bps to 42.9 percent; and selling, general and administrative expenses were $10.6 million or 42.6
percent of net sales versus $10.1 million or 42.9 percent of net sales
one year ago.
Noting that the June-ending quarter is
traditionally its weakest operating period, the company said that the
bulk of its fiscal 2012 fourth quarter profit was generated through a
revaluation of net deferred tax assets.
Consolidated Annual Results
For its 2012 fiscal year, the Company reported:
Net earnings of $14.5 million, or $1.27 per diluted share, up 93.7 percent when compared to $7.5 million or $0.67 per diluted share, reported one year ago;
A year-over-year net sales increase of 20 percent to $155.9 million from $129.6 million;
Gross profit as a percent of net sales at 43.1 percent, up from 37.2 percent in the comparable period; and
SG&A expenses of $43.8 million, or 28.1 percent of net sales, versus $36.5 million, or 28.2 percent of net sales, reported for fiscal 2011.
The company said that its full-year results were favorably impacted by the accretive nature of first-time reporting of full-year operating results from its two non-footwear acquisitions, completed during the second half of fiscal 2011; and by a strong performance in its footwear business.
Financial Strength
The Company remained in a healthy financial position at year-end.
Cash and short-term investments were 69.1 percent higher than one year ago at $41.7 million;
Consolidated inventory was at $21.1 million, down from $25.5 million at the end of fiscal 2011, reflecting a continuing focus on managing inventory flow and order fulfillment;
Net shareholders' equity rose to $74.4 million from $62.5 million one year ago; and
Long-term debt totaled $20.4 million, down from $24.6 million a year earlier.
Management Comments
“We obviously are delighted with the great year,” said Greg Tunney, President and Chief Executive Officer. “Our flexibility allowed us to post very strong results despite the mixed retail and economic environments in fiscal 2012; and we continue positioning RG Barry for the long-term.”
“This was only the second time in the past 30 years that we have posted profitable results for a June-ending quarter,” said Jose Ibarra, Senior Vice President Finance and Chief Financial Officer. “Our footwear business was robust throughout the year and when combined with the solid full-year performance of the new accessories segment, fiscal 2012 reached the near record revenue and earnings levels reported today.
“The operating performance goals established when we completed the acquisitions of Foot Petals and baggallini last year were achieved much earlier than we anticipated; and we believe that we are well-positioned strategically and financially to continue building a larger, more profitable business,” he said.
Tunney continued, “We are confident in the continuing success of RG Barry Brands. Our operating model, product offerings and ability to serve our customers have never been stronger. We are actively engaged in seeking new strategic acquisitions that will grow the bottom line and enhance shareholder value. While there will no doubt be economic and marketplace challenges in the months and years ahead, we believe the Company is positioned to not only weather these times, but to flourish long-term.”
RG Barry's primary brands include: Dearfoams slippers dearfoams.com; baggallini handbags, totes and travel accessories baggallini.com; and Foot Petals premium insoles and comfort products footpetals.com.
