Phoenix Footwear Group Inc. narrowed its earnings decline in the fourth quarter, reporting a consolidated loss from continuing operations of $128,000, or 2 cents a diluted share, compared with a loss of $467,000, or 6 cents, a year earlier.
The Carlsbad, Calif.-based company, whose stock is traded in the over-the-counter market due to its small market capitalization, posted a 40.2 percent sales increase for the period, to $4.4 million year-on-year.
For the full year, earnings were $70,000, or 1 cent a diluted share, from a loss of $484,000 a year earlier. Sales for the same quarter rose 14.8 percent to $19.2 million, driven by new product innovations, better on-time delivery of spring and fall goods, and an improvement in customer reorder volumes.
Phoenix said that as a result of continuing improvement in its operating results, the firm’s independent auditors have removed the “going concern” paragraph from their report. (That paragraph is inserted when there are apprehensions about whether a business has sufficient liquidity to survive 12 months.)
Meanwhile, as previously announced, Phoenix recently entered a joint licensing agreement with ABC/Disney Studies to develop and market footwear for the medical community. In the fourth quarter, Phoenix launched the shoes through a 60-day partnership with retailer Scrubs & Beyond. The line, called Grey’s Anatomy by Softwalk, is now available in more than 150 retailers.