Signature Eyewear, Inc. reported net income of $82,546 on sales of $4.7 million for the quarter ended Jan. 31, 2011. That compares to net income of $143,000 on sales of $5.2 million in the year-ago quarter.
The 8.4% decrease in net sales was due primarily to the expiration of Signature's bebe and Hummer eyewear licenses in June 2010 and the continuing recession. The decline in sales of bebe and Hummer eyewear was offset by increases in net sales of the company's other eyewear lines.
Its other eyewear brands include Carmen Marc Valvo, Cutter and Buck, Hart Schaffner Marx, Laura Ashley,
Michael Stars and Nicole Miller. In spring, it's introducing a Hickey
Freeman and Bobby Jones Signature men's
eyewear and sunwear line. Proprietary
brands include Dakota Smith, Rough Justice and The Signature Collection.
Net Income in the first quarter decreased due to lower sales and gross margin. The decrease in gross margin was attributed to competitive conditions in the optical industry and the impact of private label footwear sales, which have lower gross margins than eyewear sales.
Michael Prince, Signature's chief executive officer, stated: “We are pleased to have maintained profitability as high unemployment and consumer uncertainty have adversely affected the optical industry. We achieved this through the exceptional efforts of our sales force in promoting our other brands, revenues generated by our new women's footwear division, and our continued emphasis on efficiencies to reduce costs.”
In the first quarter Signature launched its new division, Signature Fashion Group, to focus on women's footwear and fashion accessories. This division will bring Signature's expertise in brand management to the development and marketing of these new product lines. In the first quarter, this division generated its first revenues from the sale of private label footwear. Signature Fashion Group will launch its own Rough Justice brand of footwear in the second fiscal quarter of 2011.
Prince also stated: “We look forward to the launch of our 2 new men's collections, Hickey Freeman and Bobby Jones in the late Spring. This will greatly enhance our men's portfolio in both eyewear and sunwear.”
