NEW YORK – Tandy Brands Accessories nearly doubled its first-quarter profits despite lower sales.
In the three months ended Sept. 30, net income skyrocketed 92.8% to $2.8 million, or 41 cents a diluted share, from $1.5 million, or 22 cents, in the 2005 quarter.
Sales decreased 6.2% to $57.2 million from $60.9 million a year earlier as the company withdrew from lower-margin women’s accessories categories, but gross margin advanced to 36.8% of sales from 33.3% a year ago as the company cut $1.4 million out of its selling, general and administrative costs.
J.S.B. Jenkins, president and chief executive officer, said that, while revenues in remaining women’s categories exceeded projections, “sales in our men’s segment increased 7.9% for the first quarter due to increased demand for belts and gift accessories in most of our major channels of distribution.”
He cited improved shipping efficiencies, the consolidation of two women’s divisions into one, a smaller workforce and a “cautious approach on spending” as among the contributors to the improved bottom line.
Arlington, Tex.-based TBA expects full-year sales to range between $177 million and $182 million with earnings per share landing between 67 and 72 cents a diluted share.
The company manufactures and markets products including belts, wallets, handbags, suspenders, neckwear, gifts and sporting goods under numerous brands and private labels.