Cutter & Buck Profits Double With 67% Sales Increase For Third
Quarter
SEATTLE, March 12 /PRNewswire/ -- Cutter & Buck Inc. (Nasdaq: CBUK - news) today reported record third quarter
sales and doubling of profits for the quarter. Net profits for the quarter ended January 31, 1998 increased 107% to $673,000
on revenues of $14.2 million compared to $324,000 on revenues of $8.5 million in the like period a year ago. Diluted earnings
per share were $.12 for the third quarter compared to $.06 in the like period of the prior year. Gross margin for the third
quarter of fiscal 1998 increased to 42.1% from 41.3% for the third quarter of fiscal 1998.
Sales increased 53% to $43.9 million for the first three quarters of the 1998 fiscal year compared to $28.7 million for the same
period of fiscal 1997. Year-to-date gross margin increased to 41.2% in fiscal 1998 from 39.2% in fiscal 1997.
For the first nine months of fiscal 1998, net profits increased 73% to $2.3 million compared to $1.3 million in the first nine
months of fiscal 1997. Diluted earnings per share for the first nine months of fiscal 1998 were $.42, an increase from $.30 in
the same prior year period.
''I'm very pleased with the way our team has worked to produce consistently strong revenue and profit growth,'' said Harvey
Jones, Chief Executive Officer. ''We've just finished the busiest trade shows in the Company's history and received positive
feedback on the entire Cutter & Buck product line. And we are happy that the recent launch of our first women's collection for
Summer 1998 has been received with enthusiasm. To support our growth in the retail channel, we increased our design team
as well as the number of products offered.
''We are proud to be merchandise vendors this summer to three of the world's most prestigious golf tournaments: the U.S.
Open at The Olympic Club, the British Open at Royal Birkdale, and the PGA Championship at Sahalee Country Club in a
suburb of our hometown, Seattle. These tournaments help to increase the stature of the Cutter & Buck brand and cement our
strong position within the golf industry,'' added Jones.
''We achieved our fifth consecutive quarter with a gross margin in excess of 40%,'' stated Martin Marks, President. ''This has
been a direct result of our margin improvement strategies. We also have seen the benefit of operating efficiencies in sales,
marketing and design that helped us reduce operating expenses to 35.1% of sales in the third quarter from 37.2% in the same
period last year. Our record third quarter sales and earnings performance reflect solid progress in our strategic plan to build
Cutter & Buck into a major sportswear company,'' added Marks.
Statements made in this news release that are not historical facts are forward looking information. Actual results may differ
materially from those projected in any forward looking information. Specifically, there are a number of important factors that
could cause actual results to differ materially from those anticipated by any forward looking information. Those factors include,
but are not limited to, style changes and product acceptance, production delays, seasonality, the ability of the Company to
control costs and expenses, the ability to penetrate its chosen distribution channels, competition, the effect of interest and
foreign currency exchange rates, and general economic conditions in the United States and in foreign markets. Additional
information on these and other factors which could affect the Company's financial results are included in its Securities and
Exchange Commission filings. Finally, there may be other factors not mentioned above or included in the company's SEC
filings that may cause actual results to differ materially from any forward-looking information.
Cutter & Buck designs, sources and markets updated traditional sportswear and outerwear. It distributes its products both
domestically and internationally, predominantly through golf pro shops and resorts, better specialty stores and corporate sales
accounts. The company has developed a colorful, innovative collection of high-quality sportswear targeted to the upscale
apparel market, projecting an updated American traditional design evocative of a sporting lifestyle.
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