Daniel Green Company (Nasdaq: DAGR) has reported net sales for the first quarter of 2001 of around $10.9 million compared to $1.1 million in the corresponding quarter last year.

The pro forma net sales for last year including the Penobscot and LB Evans acquisition stub was $7.7 million. Comparable combined company sales for the first quarter resulted in a 41.5 per cent increase over last year.

In a statement, Greg Tunney, president and chief operating officer said: "A majority of our products continue to be made of leather. As a result of the 'mad cow' disease epidemic in Europe, the footwear industry continues to be concerned about rising leather prices in the future and what impact on gross profits this could have. Year to date we have begun to experience limited price increases for our cost of goods.  

"During what has been described as a "very tough" early spring season by the industry, both the Trotters and SoftWalk brands of the company have continued to perform well at retail. This is a result of our brands maintaining a clean channel of distribution with a focus on growing the business with non-promotional retailers. Our "Future Order" position is currently running ahead of last year's results and we are on plan for the up-coming fall season.

"The end of the year 2000 marked the successful completion of our three-year "Strategic Turnaround Initiative" for the Daniel Green Company. We have now achieved three-quarters of positive profitable results consecutively for our company. The company accomplished our objectives of merging our respective operating companies together during the past year. Unavoidable growing pains were of course experienced during the transition of our merging activities. However, these efforts were necessary in order to have a solid foundation in place for the future."