R.G. Barry Corp. saw revenue and income decline in its first quarter of fiscal 2014.
The Pickerington, Ohio-based company said net income fell 22.4 percent to $4.8 million, or 41 cents a diluted share, in the period ended Sept. 30. In the year-ago quarter, earnings were $6.1 million, or 54 cents. (Analysts had predicted earnings of 57 cents.)
Net sales for the quarter were $41.9 million, an 11.3 percent decrease from a year ago.
The firm expanded in 2011 to include accessories with Foot Petals and Baggallini, which have been a key source of income. For the first quarter in 2014, accessories sales increased 1.4 percent to $9 million, compared with the same quarter last year. Footwear sales declined 14.2 percent to $32.8 million.
Executives said that timing issues related to holiday shipments, the challenging retail climate and continued effects of moving away from lower-margin products were the key reasons for the disappointing quarter.
“We are obviously disappointed in our first-quarter results,” said Greg Tunney, president and CEO of R.G. Barry. “But ours has never been a quarter-to-quarter business. Holiday shipments to retailers can occur in either the first or second quarter, based upon retailer needs; and retail sell-through during the Christmas season has significant impact on our rate of profitability. We are working with our customers to maximize our in-store performance between now and December 31.”
The company is still weighing an unsolicited acquisition offer for $20 per share from Greenwich, Conn.-based Mill Road Capital.