NEW YORK – Swank Inc. saw its profits, sales and gross margins increase during the third quarter and nine months ended Sept. 30 as sales accelerated and sourcing costs were reined in.
Net income for the three months was $3.1 million, or 51 cents a diluted share, more than three times the year-ago figure of $915,000, or 15 cents. Net sales bounded 27.9% to $33.2 million from $25.9 million in last year’s period. Jewelry sales rose 34%, spurred by the addition of Donald Trump and Chaps lines, while personal leather goods were up 42%, helped by the successful debut of Nautica and “continued strength” in the Tommy Hilfiger collection. Private-label merchandise and Nautica propelled belts to a 23% increase in net sales during the quarter. Gross margin escalated to 35% of sales from 31.9% in last year’s quarter.
“We are very pleased with the quarter’s results which suggest that our efforts during the past year to develop of variety of new business opportunities are bearing fruit,” said John Tulin, president, in a statement.
Tulin told MRketplace.com that the New York-based accessories firm is continuing its exploration of new branded programs across all classifications and that it expects additions to its portfolio within the coming months. The fourth quarter will see the roll-out of the Chaps line of gift merchandise.
The company indicated that the decretive effect of higher in-store markdowns was offset a reduction in customer returns.
For the nine months, net income skyrocketed to $4.1 million, or 69 cents a diluted share, from $133,000, or 2 cents. Net sales picked up 21.7% to $81.8 million.