USA: Donnkenny Returns To Profit
Daniel H. Levy, chairman and CEO commented that the change in first half year results represented a $4.7m improvement in net income compared to the previous year and that the company remains poised to return to profitability for the first time since 1995.
A significant contributor to Donnkenny's anticipated return to profitability is its first half year improvement in gross margin from 17.2 per cent to 22.7 per cent or an improvement of $3.4m gross margin dollars which is attributed to improved sourcing and better inventory control.
The company reported that in the second quarter, it had a net loss of $1.4m, or $0.33 loss per diluted share, compared to a net loss of $2.2m, or $0.62 per diluted share for the same period a year ago.
Net sales for the second quarter were $30.5m, as compared to $27.7m reported for last year's second quarter. The operating loss decreased from $1.1m in the second quarter of fiscal 2000 to $0.3m in the second quarter of fiscal 2001.
For the six months ended June 30, 2001, net sales were $67.8m, as compared to $70.1m reported for its six month period ended June 30, 2000. The net loss decreased from $5.7m or ($1.60) per share to $1.1m or ($0.25) per share for the six months ended June 30, 2001 from the comparable period a year ago. The average number of common shares and common stock option equivalents outstanding for purposes of computing diluted earnings per share were 4,367,417 compared to 3,586,758 for the comparable period in 2000.
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