Lenox Group Inc. Reports First Quarter 2008 Results for its first quarter ending March 29, 2008. - courtesy of the Trading Markets website
An excerpt from their article:
Net sales for the first quarter 2008 totaled $71.4 million as compared to $86.4 million for the comparable prior year period. Net loss for the first quarter of 2008 was $9.1 million as compared to a net loss of $13.0 million in the comparable prior period. EBITDA (earnings before interest, taxes, depreciation and amortization) adjusted for special or one-time items for the first quarter of 2008 was a loss of $5.2 million as compared to loss of $11.4 million for the same period in 2007. (See table below). The Company's business is highly seasonal and historically operates at a net loss in the first quarter of its fiscal year.
Marc Pfefferle, Interim Chief Executive Officer, said, "The reduction in net sales is primarily due to lower inventory liquidation sales in the first quarter of 2008 as compared to 2007, as well as a reflection of the difficult economic and retail environment that began in the fourth quarter of 2007. In addition, we have continued to see a gradual decline in the overall fine china and collectibles categories, as well as a continued contraction of the Gift & Specialty channel. However, in the first quarter of 2008, we were successful in offsetting sales shortfalls and recorded a significant reduction in the net loss versus last year. This was accomplished with improved gross margins resulting from improved product mix, more efficient sourcing processes and better Kinston plant performance, as well as a significant reduction in operating expenses.
While the weak economy is expected to continue to impact sales in 2008, the Company's strategy is to offset declining categories and channels through the introduction of innovative new products, licensing into new product categories and, where appropriate, better balance its sales by channel. In this regard, results from our new product introductions over the last year and a half have been very encouraging and well received by retailers and end customers alike. For example, we are optimistic about our new Lenox and kate spade fine and casual china introductions, such as Simply Fine, our new china giftware, the totally redesigned Dansk upstairs tabletop collection and several new Department 56 Christmas and giftware products.
Bridal registrations, which are a key indicator of future china and bridal giftware sales, are trending up in virtually all product categories. Going forward, we plan a continued stream of innovative and exciting new products for all brands and channels, that will position the Company to grow as economic conditions improve. In addition, we continue to focus on executing on the many process improvements which have already resulted in better product margins and significant cost reductions."
An excerpt from their article:
Net sales for the first quarter 2008 totaled $71.4 million as compared to $86.4 million for the comparable prior year period. Net loss for the first quarter of 2008 was $9.1 million as compared to a net loss of $13.0 million in the comparable prior period. EBITDA (earnings before interest, taxes, depreciation and amortization) adjusted for special or one-time items for the first quarter of 2008 was a loss of $5.2 million as compared to loss of $11.4 million for the same period in 2007. (See table below). The Company's business is highly seasonal and historically operates at a net loss in the first quarter of its fiscal year.
Marc Pfefferle, Interim Chief Executive Officer, said, "The reduction in net sales is primarily due to lower inventory liquidation sales in the first quarter of 2008 as compared to 2007, as well as a reflection of the difficult economic and retail environment that began in the fourth quarter of 2007. In addition, we have continued to see a gradual decline in the overall fine china and collectibles categories, as well as a continued contraction of the Gift & Specialty channel. However, in the first quarter of 2008, we were successful in offsetting sales shortfalls and recorded a significant reduction in the net loss versus last year. This was accomplished with improved gross margins resulting from improved product mix, more efficient sourcing processes and better Kinston plant performance, as well as a significant reduction in operating expenses.
While the weak economy is expected to continue to impact sales in 2008, the Company's strategy is to offset declining categories and channels through the introduction of innovative new products, licensing into new product categories and, where appropriate, better balance its sales by channel. In this regard, results from our new product introductions over the last year and a half have been very encouraging and well received by retailers and end customers alike. For example, we are optimistic about our new Lenox and kate spade fine and casual china introductions, such as Simply Fine, our new china giftware, the totally redesigned Dansk upstairs tabletop collection and several new Department 56 Christmas and giftware products.
Bridal registrations, which are a key indicator of future china and bridal giftware sales, are trending up in virtually all product categories. Going forward, we plan a continued stream of innovative and exciting new products for all brands and channels, that will position the Company to grow as economic conditions improve. In addition, we continue to focus on executing on the many process improvements which have already resulted in better product margins and significant cost reductions."
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