• Q1 profit edged down 0.4% to $259,000
  • Sales climbed 1.6% to $5.8m
  • Gross margin declined to 36.9%

Comfort shoe maker Phoenix Footwear Group has reported a slight decline in first-quarter net profit, after rising costs and the clearance of discontinued inventory negatively impacted margins.

The Carlsbad, California-based company said net earnings edged down 0.4% to US$259,000 for the three months ending 30 March, over $260,000 in the same period last year.

Net sales climbed 1.6% to $5.8m from $5.7m the prior year. Gross profit margin declined to 36.9%, compared to 37.5% last year, due to the clearance of discontinued and closed-out styles as well as a 2.1% increase in the standard unit cost.