Blair Corp., the apparel cataloger, reported net income for the second quarter ended June 30, was $4.1 million, compared with net income of $7 million for the second quarter last year.
Net sales for the quarter were $15 million, compared with 14 million for last year’s second quarter.
"The reduction in second-quarter net income was primarily attributable to an increase in both cost of goods sold and advertising expenses," according to a statement from Blair in Warren, PA.
Advertising expenses as a percentage of net sales rose to 26.9% from 25%. The increase of $2.9 million can be attributable to "a strategic increase in catalog mailings to current and prospective customers," said the company.
Cost of goods sold as a percentage of net sales increased to 47.1% for the second quarter of 2003, up from 46.7% in the comparable quarter last year. The rise in goods sold of $617,000 is because of promotions that were undertaken to manage inventory. Also, inbound airfreight expenses and shipping costs increased.
The statement also pointed out that the e-commerce site, Blair.com, and the Crossing Pointe catalogs are "growing in revenue. A new division was formed called Allegheny Trail, which will be targeted at outdoor sporting goods retailers and will feature men’s and women’s outdoors apparel.
Net income for the six-month period was $4.6 million, compared with $12.6 million for those months in 2002.
For the six-month period ended June 30, net sales were $29 million, compared with 28 million for the six months ended June 30, 2002.
The company is focused on generating sales and improving inventory management, said Bryan J. Flanagan, CFO, in a statement. "Liquidity and cash availability have been maintained, and inventory levels remain in check."
