Sales fall at Phoenix Footwear
Phoenix Footwear Group has posted a decline in sales for the fourth quarter and year ended January 3. For the fourth quarter, net sales totalled $16.5 million, down 15% compared with $19.4 million in the fourth quarter of 2007. For the full year, net sales were $75.1 million, a 9% decrease from $82.9 million in the previous year. Net loss was $14.2 million during the fourth quarter compared with $12.8 million in the fourth quarter of fiscal 2007. For the full year, net loss totalled $18.8 million compared with $16.6 million the previous year. Footwear sales, including the footwear and premium footwear segments, were $37.7 million for 2008, a decrease of $3.6 million from $41.3 million in 2007. Net sales decreased in all primary footwear distribution channels, including independent retailers, department stores and catalogue vendors, as the retail market continued to experience unprecedented softness during the second half of 2008. Gross profits fell $1.1 million in 2008. "With the economic headwinds, this past year was an especially challenging one," said Russell Hall, president and CEO. "We are disappointed in our net sales decline and resulting net loss; however, we have made some important gains in managing our inventory and gross margins and in restructuring and right sizing our business.” He added: “Our productivity improvements, combined with our new organisational structure, position us to produce better results once retail conditions normalise."
