Phoenix returns to profitability

16/05/2007

California-based footwear, apparel and accessories company Phoenix Footwear Group, Inc. has posted higher sales for its first quarter ended March 31.

Net sales increased 4.3% to $42.1 million compared with $40.3 million for the first quarter of 2006. Sales growth was primarily attributable to the strong performance of its Altama and Chambers Belt brands, which increased 54% and 28.3%, respectively, as well as a positive contribution from Trotters. Additionally, during the first quarter, the company started shipping footwear under the American Red Cross brand. However, net sales growth was offset significantly by a 46.5% decrease in Tommy Bahama and a 48.6% decrease in H.S. Trask.

First quarter net income was $414,000 compared with $3 million in the prior-year period.

As of March 31, the company held approximately 31,000 pairs of firm military boot delivery orders from the Department of Defense and another US government agency which are expected to be delivered during the second quarter of fiscal 2007. Demand for Exo-Speed and Exo-Light Speed tactical boots also remained very strong in the quarter.