Accessory footwear firm RG Barry Corporation has posted third quarter net earnings of US$1.2m as compared to net earnings of $208,000 in the third quarter of fiscal 2007.

The company said its Q3 net sales increased nearly 24% to $20.2m, while gross profit as a percent of sales increased to 39.5 percent from 38.8 percent in the comparable quarter of fiscal 2007.

However, for the first nine months of the fiscal year, net earnings were $9.1m versus net earnings of $26.8m in the comparable period one year ago. Fiscal 2007 net earnings reflected an income tax benefit of $13.1m from the reversal of a deferred tax asset valuation allowance and an $878,000 benefit from the sale of land though, the company said. Its sales are flat for the year so far.

"We are very pleased with our performance through the third quarter," said Greg Tunney, president and CEO. "We benefited from our position of leadership in accessory category footwear, our variable cost business model, our strong balance sheet and our growing presence across broad retail channels.

"We continue to expect our full fiscal year 2008 income from continuing operations, before taxes and excluding the 2007 gain of $878,0000 from the sale of land, to increase by approximately 10.0% versus fiscal 2007. However, due to a slowing retail environment and to the loss of some reorder business as a result of the April 10 tornado that damaged our San Angelo, Texas, distribution center, we now expect our net sales for the full 2008 fiscal year to rise by approximately 3.0%, instead of our previously issued guidance of approximately 4.0%."