R.G. Barry Corp.’s first-quarter income surged on new businesses, and the company continues to be on the lookout for more acquisitions.
For the quarter ended Oct. 1, the Pickerington, Ohio-based company earned a net income of $6.9 million, or 61 cents a share, an increase of 65 percent from $4.1 million, or 37 cents, in the same period a year ago.
Net sales advanced 39 percent to $50.2 million, from $36.3 million.
Footwear sales rose 16 percent to $42.2 million, which produced a 270 basis point increase in gross profit margin. Accessories sales, a new revenue stream for the firm, totaled $8.1 million and produced a 57.2 percent gross profit margin.
“Our footwear segment is performing well and the accessories business units are fully integrated and meeting all of our expectations. Footwear remains our largest business, and we are focused on it as we enter the important holiday selling season,” said Greg Tunney, president and CEO of R.G. Barry.
SVP and CFO Jose Ibarra noted that this quarter marked the start of the positive impact of the firm’s acquisitions in 2011, and he expects to continue to see these benefits during the remainder of fiscal 2012 and beyond.
Tunney added, “Based upon our current view of fiscal 2012 and the successful integration of our recent acquisitions, we will continue our search later this fiscal year for appropriate businesses to purchase. We will continue seeking out and identifying only profitable, growing businesses that can help us diversify our business model and expand our portfolio of accessories brands.”
R.G. Barry ended the quarter with $3.5 million in cash and $23.6 million in long-term debt.