• Q2 profit plummets 35.5% to $814,475
  • Sales fall 4.1% to $16m
  • Zipper sales down 9.3%

Apparel fastener, zipper and trim supplier Talon International says it remains confident in its outlook, despite reporting a 35.5% decline in second-quarter net profit, hurt by lower sales.

Net income amounted to US$814,475 for the three months to 30 June, compared to $1.3m in the same period of the prior year.

Total sales were down 4.1% year-on-year to $16m, with zipper sales declining 9.3% to $8.6m. But trim sales rose 2.7% to $7.3m. Gross margin increased to 33.9% from 33.4% last year.

Sales and marketing expenses increased 11.1% to $1.7m, mainly due to investments in new product development including particular emphasis on growing its TekFit product category.

"While we experienced some sales softness in the second quarter, we remain confident in our business strength, our premium products and our long-term growth strategy," said Talon CEO Lonnie Schnell.

"The weakness within the retail industry during the first quarter of this year carried over excess inventories at retail, contributing to weaker demand for our apparel accessories during the second quarter."

He added that inventories are "rebalanced" at the retail level, and expects to see increasing demand for its products. 

Year-to-date net income dropped 46.1% to $832,000 from $1.5m, while sales edged up 1.9% to $27.3m.