US: Jaclyn Q2 profit plunges on lower children’s wear sales
Women's and children's apparel maker Jaclyn Inc has reported a slump in its second quarter profit on lower sales in its children's apparel and handbag businesses and rising costs in Asia.
For the three months to 31 December, net earnings plunged to $601,000, or $.24 per share, from $1.72m, or $.68 per share, in the same period last year.
Net sales for the quarter fell by 15.5% to $40.193m from $47.584m a year earlier.
Commenting on the results, Allan Ginsburg, chairman of the board, said: "Net sales decreases in our children's apparel and handbag businesses accounted for the lower net sales in this year's second fiscal quarter due to a reduced number of orders from a significant customer.
"In addition, the retail sales environment has been extremely difficult and rising product costs in Asia have begun to affect our gross margins."
But he said new children's apparel orders due to ship during the second half of fiscal 2008, "should bring our fiscal 2008 net sales slightly below our fiscal 2007 sales level."
Apparel and accessories maker Jaclyn Inc has narrowed its third quarter loss despite lower sales and rising production costs in Asia which cut into margins....
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