Signature Eyewear, Inc. reported net income of $9,000 on net sales of $4.5 million for the quarter ended April 30, 2011, its 22nd consecutive profitable quarter. This compares to net income of $157,000 on net sales of $5.9 million for the second quarter of fiscal year 2010.
The company makes eyewear under the Carmen Marc Valvo, Cutter and Buck, Hart Schaffner Marx, Laura Ashley, Michael Stars and Nicole Miller names. Signature Eyewear’s proprietary brands include Dakota Smith, Rough Justice and The Signature Collection.
For the six months ended April 30, 2011, Signature reported net income of $96,000 on net sales of $9.2 million, as compared to net income of $299,000 on net sales of $11.0 million for the six months ended April 30, 2010.
The decrease in net sales in the second quarter of 2011 was due primarily to the expiration of Signature’s bebe and Hummer eyewear licenses in June 2010. The lower bebe and Hummer eyewear sales was offset in part by increases by the Company’s other eyewear lines and its new footwear line in the three and six months ended April 30, 2011 of $1.2 million and $2.5 million, respectively.
Signature’s operating expenses decreased $743,000 and $1.1 million in the three months and six months ended April 30, 2011, due primarily to reduced selling expenses.
Michael Prince, Signature’s Chief Executive Officer, stated: “In the second quarter, we launched our Rough Justice line of footwear and are excited about the rave reviews we received in the fashion press. Rough Justice eyewear and sunwear will launch this fall. We are also expanding our eyewear lines with the launch of Hickey Freeman eyewear and Bobby Jones sunwear this summer. The Men’s eyewear segment is Signature’s fasting growing eyewear category.
“In addition, we recently extended our Carmen Marc Valvo eyewear license for three years, or until April 2016,” noted Prince.
