Phoenix Footwear Group, parent company to Royal Robbins and Altama footwear, saw second quarter net sales more than double with an increase of 127.1% to $34.9 million compared to $15.4 million for the second quarter of 2005. While much of this increase was due to recent acquisitions outside of the sporting goods and outdoor industries, the two brands in these sectors reported the strongest organic growth during the period.
Second quarter net sales for Royal Robbins were $6.5 million, an increase of 25.8%, compared to $5.2 million a year ago. The company continued to build its position in Canada and maintained momentum in the domestic market. During the quarter Royal Robbins added Sport Chalet as a new customer and plans to have 15 doors open.
Altama’s net sales for the second quarter of 2006 increased 87.8% to $6.5 million, compared to $3.5 million for 2005. This was due, in part, to the strong demand from for new models of tactical boots. The company opened 40 new accounts in the quarter, bringing the year-to-date total to 90. Additionally, Phoenix signed up five new rep groups during the quarter.
Altama is under the final option year of its contract with the DoD to manufacture mil-spec boots. In August, Altama submitted a bid for a new five-year solicitation for hot weather combat boots. There is no certainty that Altama will be notified of an award by that time or whether it will be awarded that or future DoD boot solicitations. Management stated that the company could be adversely affected if Altama does not receive an award from this solicitation.
The company’s net loss for the second quarter was $342,000, or four cents per share, compared to net loss of $1.0 million, or 14 cents per share, for the comparable quarter a year ago. Included in the net loss is a severance charge of approximately $800,000, or six cents per diluted share. Excluding this charge, earnings per share were two cents.
