Despite lower net sales, Phoenix Footwear Group marched out of the red for the second quarter.
Net earnings at the Carlsbad, Calif.-based company for the period ended July 3 were $201,000, or 3 cents a share — a reversal from a loss of $5.1 million, or 63 cents, in the same period a year ago.
Net sales for the quarter were $3.8 million, down 5 percent from $4 million in the year-ago quarter. Meanwhile, the firm streamlined its operating expenses, which fell 29 percent to $1.8 million, from $2.5 million.
“We experienced solid demand for our products and good sell-through at retail, however [retailers’] efforts to minimize their inventories generated weaker follow-on sales for the quarter than would otherwise have been normal,” said Russell Hall, president and CEO of Phoenix, in a statement.
“In addition to our sales efforts, we have also taken steps to further reduce our [Selling, General & Administrative] expenses by approximately $700,000 annually. These savings will begin to be realized during the fourth quarter. Our singular focus remains to return to operating profitability by accelerating sales and tightly controlling our costs.”
Hall added that the firm is seeing a “strong future order backlog” and so expects to generate solid growth during the third quarter. Phoenix has also introduced a new toning product, called HealthGlide under the SoftWalk label that is slated to reach retail floors this December.
The firm ended the quarter with $436,000 in cash and cash equivalents, up from $356,000 a year ago.