RG Barry Q2 Slips

RG Barry Q2 Slips
Greg Tunney

It was a mixed second quarter at RG Barry Corp. as gains from accessories sales offset a decline in footwear.

For the period ended Dec. 29, the Pickerington, Ohio-based firm earned a net income of $5.3 million, or 46 cents a share, down from $6.4 million, or 56 cents, a year ago.

Total revenue slipped 12.8 percent to total $48.5 million. Footwear sales for the quarter fell 17.5 percent to $39.5 million, while accessories rose 17.1 percent to finish at $9 million. 

The firm, whose brands include Dearfoams, Baggallini and Foot Petals, said in a statement that the decrease in footwear sales reflected reductions in certain seasonal programs and a generally soft retail business in some channels in the back half of 2012.

“Our decision to exit certain seasonal footwear programs, the elimination of a key men’s slipper program and general retail softness in our replenishment footwear business all will negatively impact our overall annual performance to a greater extent than we originally envisioned,” Greg Tunney, president and CEO of RG Barry, said in a statement. “We expect our accessories segment to meet or exceed its growth and profitability objectives for fiscal 2013, but those gains will only partially offset anticipated declines in footwear.”

At period’s end, RG Barry held $41 million in cash and short-term investments, and $18.2 million in long-term debt.