• Q1 net loss of US$39,000
  • Gross margin declines to 35.6%
  • Sales grow 16.7%

US comfort shoe maker Phoenix Footwear Group has moved to a loss in its first-quarter as a result of one-off expenses.

Net losses amounted to US$39,000 in the three months ended 4 April. This compares to earnings of $171,000 a year earlier. Interest expense for the quarter included non-recurring prepayment and other refinancing costs of $167,000 incurred with the entry into a new loan and security agreement.

Gross margin declined to 35.6% from 36.9%, a 130 basis point decline, primarily associated with the clearance of phased out and discontinued fall styles and increased sales volume of lower margin licensed footwear compared to last year.

Net sales grew 16.7% to $6.7m. This was a result of a 143% increase in the sales of licensed footwear sold into the medical uniform channel of distribution and an increase in customer demand of Trotters and Softwalk’s spring product offering.