Signature Eyewear, Inc., which makes Cutter & Buck eyewear, reported its earnings in its third quarter ended July 31 dipped to $155,000 from $540,000 a year ago. Sales were down 7.8% to $5.9 million from $6.4 million a year ago.

In the nine months,  it earned $570,000 on sales of $18 million. For the prior year, income reached $538,000 on sales of $18.6 million.

“We have maintained net income at close to 2008 levels despite declining net sales through continued cost-cutting measures and lower interest expense,” explained Michael Prince, Signature Eyewear`s CEO. “Net sales have declined due to the deepening global recession, which has materially impacted our international sales. Domestic sales have remained relatively level primarily through the growing popularity of our largest line, bebe eyewear, and our Dakota Smith Eyewear line, and the addition of Carmen Marc Valvo Eyewear and Michael Stars Eyewear,” he added.

“We have continued our efforts to improve our balance sheet during this recessionary period. We have reduced inventory from $5.6 million at October 31, 2008 to $4.4 million at July 31, 2009 while reducing our accounts payable and accrued expenses by $1.2 million. Total debt has decreased by $367,000 in fiscalv2009, from $4.9 million at October 31, 2008 to $4.5 million at July 31, 2009,” Prince concluded.

Operating expenses declined approximately $201,000 from the third quarter of 2008 compared to the third quarter of 2009 and approximately $302,000 from the first nine months of 2008 compared to the first nine months of 2009.

Interest expense, net, decreased $13,000 in the third quarter of 2009 and $61,000 in the 2009 nine months primarily due to lower outstanding borrowings and reductions in the interest rate on the company`s revolving line of credit.
 
Signature Eyewear makes eyeglasses and sunglasses under bebe, Carmen Marc Valvo, Cutter and Buck, Dakota Smith, Hart Schaffner Marx, Hummer, Laura Ashley, Michael Stars and Nicole Miller.