Signature Eyewear, which makes Cutter & Buck eyewear, reported net income of $216,000, or 3 cents a share, on net sales of $6.1 million for the first quarter ended April 30, 2009. This compares to net income of $212,000, or 3 cents, on net sales of $6.7 million a year ago.
For the six months ended April 30, net income increased to $415,000 from $362,000 while net sales declined slightly to $12.1 million from $12.2 million.
The increase in net income in the fiscal 2009 periods was due primarily to lower operating expenses and a reduction in interest expense. Operating expenses decreased $354,000 from the 2008 quarter to the 2009 quarter and $100,000 between the six-month periods.
The net sales declines were due to the deepening global recession. However, net sales were benefited by the continued increase in net sales of the Companys largest line, bebe eyewear, and the introduction of Carmen Marc Valvo Eyewear in the Spring of 2008 and Michael Stars Eyewear in the second quarter.
“Expenses are down and earnings are up because we are continuing to contain our costs during a very challenging global economy,” stated Michael Prince, Chief Executive Officer of Signature. “We believe our excellent earnings results in the quarter also reflect the consumer-friendly price structure of our lines and our ability to adapt to the current market conditions. While most companies are not immune from the recession, we are managing our expenses and reducing our inventory and debt in 2009 to combat the tough business environment.”
Signature Eyewear's brands makes prescription eyeglass frames and sunglasses under bebe, Carmen Marc Valvo, Cutter and Buck, Hart Schaffner Marx, Hummer, Laura Ashley, Michael Stars and Nicole Miller.
