R.G. Barry Corp. broke even in the third quarter after acquiring two companies, while revenue slipped.
The footwear and accessories marketer, based in Pickerington, Ohio, earned zero cents per share for the period ended April 2. It registered a net loss of $42,000 after accounting for $900,000 in costs related to the acquisitions of Foot Petals and Baggallini.
Revenue also fell 9 percent to $20.1 million, from $22.2 million.
The firm had earned a net income of $539,000, or 5 cents a share, in the same quarter a year ago.
The company said in a statement its third-quarter performance was negatively impacted by softness in the replenishment slipper business with its largest footwear customer. Performance of its year-old warehouse club program, launched in the third quarter last year, was also negative year-over-year.
“The exciting transformational aspects of this year are related to the impact of our two recent acquisitions and to our decision to exit underperforming footwear businesses,” Greg Tunney, president and CEO of R.G. Barry, said in the statement. “As a result of these important actions, we will enter our new year on July 3 as a more balanced, faster-growing and more profitable multi-dimensional provider of footwear and accessories.”
Jose Ibarra, SVP of finance and CFO, said the firm is “pleased by the initial positive impact of the new Foot Petals business on our third-quarter consolidated performance.”
The Baggallini acquisition will be accounted for in the firm’s fourth-quarter results and is expected to help the group “perform at rates well above those traditionally generated by our footwear business alone,” he added.
R.G. Barry ended the quarter with cash and short-term investments of $28.4 million, down from $46.7 million a year ago, and long-term debt of $25.4 million.