R.G. Barry’s Sales Jump 25 Percent in Third Quarter

R.G. Barry Corporation, which markets Dearfoams slippers, baggallini handbags and Foot Petals insoles, reported sales of $25.1 million in the third quarter ended March 31, up 24.9 percent from a year ago quarter.
Net earnings were $834,000, or 7 cents per diluted share, up from break-even in the corresponding period last year. Gross profit as a percent of sales increased 520 basis points to 44.6 percent compared to 39.4 percent in the equivalent quarter of fiscal 2011.
“This is one of the best March-ending earnings performances in the Company's 65-year history” added Jose Ibarra, Senior Vice President Finance and Chief Financial Officer. “Growth in the department store and mass channels of our footwear business, along with the operating performance of the accessories segment, has increased our confidence that the current business model will allow us to achieve our financial goals.”
On a consolidated nine-month basis, the company reported a 23.5 percent net sales increase to $130.9 million from $106.0 million for the first nine months of fiscal 2011. Net earnings jumped 68.1 percent to $14.1 million, or $1.24 per diluted share, versus net earnings of $8.4 million, or $0.75 per diluted share, in the comparable period last year. Gross profit as a percent of net sales rose 600 basis points to 43.1 percent from 37.1 percent one year ago.
Selling, general and administrative expenses of $33.2 million, or 25.3 percent of net sales, were up 50 basis points from $26.4 million, or 24.8 percent of net sales, in the equivalent period last year.
Net sales in its Footwear segment rose 3.4 percent during the nine months to $107.2 million from $103.7 million in the comparable period last year, yielding a 350 basis point improvement in gross profit as a percentage of net sales at 40.0 percent. In its Accessories segment, which includes Foot Petals and baggallini, acquired in January and March last year, respectively, the Company recorded nine-month net sales of $23.8 million, yielding a 57.2 percent gross profit as a percentage of net sales.

“Our strong performance through the first nine months of this fiscal year has positioned RG Barry for a great 2012,” said Greg Tunney, President and Chief Executive Officer. “Both segments of our business are performing at or above our expectations despite the mixed retail and economic environments.”