SNKI....Wednesday July 28, 3:02 pm Eastern Time
Company Press Release
SOURCE: Swank, Inc.
Swank, Inc. Reports Sales and Net Loss for the Second Quarter Ended June 30, 1999
ATTLEBORO, Mass., July 28 /PRNewswire/ -- John Tulin, President of SWANK, INC. (Nasdaq: SNKI - news), today reported sales and a net loss for the second quarter ended June 30, 1999.
Three Months Six Months
Ended June 30, Ended June 30,
1999 1998 1999 1998
(In thousands except (In thousands except
shares and per share) shares and per share)
Net Sales $32,725 $32,177 $69,924 $65,806
(Loss) Income Before
Income Taxes $(1,508) $(825) $(1,303) $501
Net (Loss) Income $(746) $(503) $(631) $306
Share and per share
information:
Weighted Average Common
Shares Outstanding 16,569,423 16,525,677 16,568,025 16,518,761
Net (Loss) Income per
Common Share $(.05) $(.03) $(.04) $.02
Weighted Average Common
Shares Outstanding 16,569,423 16,525,677 16,729,320 16,637,295
Assuming Dilution
Net (Loss) Income per $(.05) $(.03) $(.04) $.02
Common Share Assuming
Dilution
Commenting on the results, Mr. Tulin stated ''while sales for the quarter and six months ended June 30, 1999 were marginally higher than the prior year, operating results were disappointing. The first half of the year was adversely affected by a less favorable second quarter annual adjustment for returns compared to 1998, together with the acceleration of the Company's previously announced Inventory Reduction program. In addition, as part of Swank's increasing utilization of the global economy, the Company recorded a $550,000 pre-tax charge in the second quarter associated with a reduction in its manufacturing work force. This charge was substantially offset by a one- time gain of $500,000 resulting from the settlement of litigation.''
Mr. Tulin stated that despite the disappointing results of the first six months, the Company continues to show forward momentum. ''Our net sales continue to improve. Our Costa Rica facility has increased its production of both jewelry and belts. We are quite pleased with the enthusiastic response key customers have had to our initial presentation of DKNY women's jewelry. Finally, we look forward to the completion of our web site during the second half of 1999. Thus, while our results for the first six months are less than satisfactory, we believe that we are well positioned as we enter the important fall season.''
Swank manufactures and markets men's belts, personal leather goods and jewelry and women's jewelry. The Company distributes its products to retail outlets throughout the United States and in numerous foreign countries. These products, which are known throughout the world, are distributed under the names ''Geoffrey Beene'', ''Pierre Cardin'', ''Claiborne'', ''Kenneth Cole'', ''Yves Saint Laurent'', ''Colours by Alexander Julian'', ''Swank'', ''Anne Klein'', ''Anne Klein II'', ''Guess?'' and, scheduled for Fall 1999, ''DKNY''. Swank also manufactures jewelry and leather items for distribution under private labels.
Certain of the preceding paragraphs contain forward-looking statements which are based upon current expectations and involve certain risks and uncertainties. Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, readers should note that these statements may be impacted by, and the Company's actual performance and results may vary as a result of, a number of factors including general economic and business conditions, continuing sales patterns, pricing, competition, consumer preferences, and other factors.
SOURCE: Swank, Inc.
|
