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.