• Swings to net loss of $42,000 from profit of $539,000
  • Net sales down 9.4% to $20.1m
  • Gross profit falls to 39.4% of net sales 

Footwear and accessories maker RG Barry Corporation has swung to a third quarter loss after being hurt by lower sales and costs related to its acquisition of the Baggallini business.

“Two major factors negatively impacted our third quarter performance,” said Greg Tunney, president and CEO.

“A new warehouse club program launched during the third quarter last year was not repeated at the same level this year; and we experienced softness in the replenishment slipper business with our largest footwear customer.”
Looking ahead, he said the acquisitions of Foot Petals and Baggallini, coupled with the decision to exit under-performing footwear businesses, will boost performance in fiscal 2012 and beyond. 

“As a result of these important actions, we will enter our new year as a more balanced, faster growing and more profitable multi-dimensional provider of footwear and accessories,” Tunney said.