Signature Eyewear, Inc., the maker of Cutter & Buck and Hummer eyewear, reported net income of $622,000 on
net sales of $24.5 million for the fiscal year ended October 31, 2008.
The Los Angeles-based company has achieved four consecutive years of profitability.
In fiscal 2007, Signature recorded net income of $2.7 million on net
sales of $25.0 million. In fiscal 2007, the company recognized a net tax
benefit of $2.1 million due primarily to a reduction in the valuation
allowance on the Company's deferred tax asset. In fiscal 2008, the company did not record a net tax benefit.
Income before taxes increased from $572,000 in fiscal 2007 to $630,000
in fiscal 2008. The increase in income before taxes was principally due
to a $209,000 decrease in interest expense resulting primarily from
lower interest rates and a reduction in depreciation expense.
Net income in fiscal 2008 was positively affected by an increase in
gross margin from 63.9% in fiscal 2007 to 64.2% in fiscal 2008. This
increase was due primarily to increasing sales of higher margin products
to the independent optical retailers. General and administrative
expenses remained constant at $5.8 million in each fiscal year.
The 2% decrease in net sales in fiscal 2008 was primarily due to a
decrease in international sales as a result of the ongoing acquisitions
of major international customers by vertically integrated competitors
and deep discounting in many international markets. Domestic sales
remained relatively constant between the years.
“We are very pleased to report another profitable year, particularly in
light of the great recession and continued weakness in the optical frame
market,” stated Michael Prince, Chief Executive Officer of Signature.
“We have recently launched our newest line, Michael Stars Eyewear, and
expanded our Signature Collection with the release of our Caligraphy
collection,” Mr. Prince continued. “These collections broaden our
product lines and allow us to go deeper with our customers. We believe
these value-priced lines will be more attractive to consumers and are
more likely to be covered by optical insurance programs.”
The Company's long-term debt continued to decline during the year, from
$5.1 million at October 31, 2007 to $4.9 million at October 31, 2008.
Signature's brands include bebe eyes, Cutter & Buck Eyewear, Carmen Marc Valvo
Eyewear, Dakota Smith Eyewear, Hart Schaffner Marx Eyewear, Hummer
Eyegear, Laura Ashley Eyewear, Michael Stars Eyewear and Nicole Miller