I.C. Isaacs’ Q2 is Dismal

NEW YORK – I.C. Isaacs & Company, the company that designs and markets the Marithé et François Girbaud brand of denim apparel, had a miserable second quarter of 2007 with net sales down to $8.5 million from $24.0 million in the second quarter of 2006. I.C. Isaacs is reporting a net loss of $3.4 million this quarter versus a net income of $2.3 million during last year’s second quarter, a quarter that included an income tax benefit of $272,000.

Interim CEO Robert Stec explained in a release, “While our financial results show clearly that our challenges continue, we have made very good progress in a number of areas. We have restructured our design department to focus on merchandise strategies and to reduce our costs. We have completed a comprehensive restructuring of our sales organization, creating efficiency and significantly improving our capabilities to penetrate both the urban and contemporary market segments. We have made a strong effort to cut costs across the organization, reduced our headcount from 110 employees at year end to just over 80 currently, and implemented cost reduction programs in all areas of the organization.”