USA: Gerber Childrenswear, Inc. Announces Second Quarter Results
For the second quarter of 2000, net sales were $58.3 million compared to $58.8 million reported for the second quarter last year. Operating income for the period was $3.2 million versus $3.9 million in the comparable period last year. Net income for the quarter was $2.3 million, or $0.12 per diluted share, compared to net income of $2.2 million, or $0.11 per diluted share, in the second quarter of 1999.
For the six-month period, net sales were $118.8 million compared to $125.1 million in the six-month period a year ago. Operating income was $9.3 million compared to $12.0 million in the first six months of 1999. Net income was $6.3 million, or $0.31 per diluted share, compared to net income of $7.0 million, or $0.35 per diluted share, in the comparable period last year.
Edward Kittredge, Chairman and Chief Executive Officer, stated, "Our second quarter results were in line with expectations. While sales were flat in comparison to last year, we demonstrated improvement and progress on a number of fronts. During the quarter, we kept expenses controlled, as evidenced by SG&A expenses which decreased 2% from $10.3 million in the second quarter of 1999 to $10.0 million in the second quarter of 2000. We proceeded with our sku reduction program, which will enable us to make further reductions in inventory levels in the future. We are comfortable with the current levels and will monitor inventory going forward. In addition, operations at our Mexico plant, opened in late 1998, are continuing to improve and we believe this will provide operating and cost efficiencies to our business."
Mr. Kittredge concluded, "We continue to identify various expense reduction initiatives which we expect will produce tangible results over the next few quarters. Looking ahead to the balance of 2000 and beyond, we believe we have instituted appropriate measures to support long-term growth and profitability."
Gerber Childrenswear, Inc. is a leading marketer of infant and toddler apparel and related products, which it offers under its flagship licensed brand, Gerber, as well as the Baby Looney Tunes, Curity and Little Suzy's Zoo licensed brand names and the Onesies trademark. The Company is the leading provider of these products to volume retailers, and also distributes to mid-tier department stores and specialty retailers. In addition, Gerber Childrenswear, Inc. acquired Auburn Hosiery Mills, Inc. and Sports Socks Company (Ireland) Limited (collectively referred to as 'Auburn') in December 1997. Auburn manufactures, markets and sells branded sport socks for men, women and children under licensed brand names such as Wilson, Coca-Cola, Converse and Dunlop.
This press release contains statements that are forward-looking within the meaning of applicable federal securities laws and are based on Gerber Childrenswear, Inc.'s current expectations and assumptions, which are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. Primary factors that could cause actual results to differ are indicated in the Company's filings with the Securities and Exchange Commission.
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