R.G. Barry Trims Loss

R.G. Barry Trims Loss
Greg Tunney

R.G. Barry Corp. narrowed its loss by half in the fourth quarter, thanks to increased revenue from recent acquisitions.

For the period ended July 2, the Pickerington, Ohio-based firm lost $863,000, or 8 cents a share, versus a loss of $1.6 million, or 15 cents, in the same period a year ago.

Net sales surged 42 percent to $23.5 million, from $16.6 million a year ago. The improvement was driven by the addition of $8.4 million in new revenue from recent acquisitions, but offset by a $1.3 million decline in footwear revenues, the firm said in a statement.

Fourth-quarter margin inched up 30 basis points to 37.4 percent.

“Our change from a one-dimensional, modest-growth slipper company to a faster-growing, multi-dimensional developer of great, fashionable, solution-oriented accessories brands and products has added an additional degree of balance to our traditionally first-half-heavy seasonal
operating pattern,” Greg Tunney, president and CEO of R.G. Barry, said in a statement. “We believe we have positioned our consolidated operations to produce annual results well above the historical levels you have come to expect from the footwear-only model.”

Tunney added that the firm, which acquired Foot Petals earlier this year, is focused on accelerating the annual growth rates of new businesses; refining its footwear model to maximize sustainable future growth and profitability; and formalizing and initiating a plan for international business expansion.

For the full 2011 fiscal year, R.G. Barry earned $7.5 million, or 67 cents, a decrease of about 20 percent year-on-year. Net sales advanced 5 percent to $129.6 million.

The firm ended the year with cash and short-term investments $24.7 million, down from $44.9 million one year ago, reflecting the use of cash reserves for acquisitions during the second half of fiscal 2011.

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