NEW YORK – Swank Inc. reversed a first-half loss and expanded its second-quarter earnings nearly eleven-fold during the three months ended June 30. The firm also registered double-digit sales increases in both the quarter and half.
Net income for the three months was $976,000, or 16 cents a diluted share, versus $89,000, or 1 cent, in the prior-year period. Sales expanded 20.1% to $26.4 million from $22 million.
In the half, net income reached $1 million, or 17 cents a share, versus a loss of $782,000, or 14 cents. Sales moved up 17.8% to $48.6 million from $41.3 million.
Swank attributed the sales increases in both periods to higher shipments of jewelry and belts and a more favorable adjustment for returns, offset by increases in in-store markdowns. Net sales of men’s jewelry were up 13% in the quarter and 31% in the half. Belt sales were up 29% in the quarter and 24% in the half. Swank began making what it called “significant shipments” of licensed Nautica accessories during the quarter.
In a statement, John Tulin, president, said the company was eager to begin shipments of its new Donald Trump, Ted Baker and Chaps collections in the fall. “While we are cautiously optimistic with regard to the upcoming holiday season, we are planning conservatively as we remain concerned over the effects that higher energy prices and the ongoing conflicts in the Mideast could have on consumer spending later this year,” he said.