Lenox Group Income Trimmed in Third Quarter
Collectibles firm The Lenox Group saw its third-quarter revenue rise, spurred largely by two additional months of revenue from its September 2005 Lenox Acquisition, and the purchase of Willitts Designs in March of this year. For the quarter, the Eden Prairie, MN-based firm’s net sales were $154 million, compared with $99.5 million a year ago. Its net income fell from $11.1 million to $5.4 million. The quarter ended Sept. 30.
“While our Lenox business performed in line with expectations in the quarter, softness in the gift and specialty channel and the collectible category continue to affect the performance of our Department 56 wholesale business,” said company chair and CEO Susan Engel, in a statement.
Engel continued, “At the same time, our profitability was restrained by rising production, delivery and distribution costs, inventory management issues and investments related to the merger.”
Within its three distribution operations, wholesale sales rose from $78.9 million a year ago to $118 million, with operating income of $28.7 million a year ago growing to $38.1 million; direct sales more than doubled from $8.7 million to $21.7 million, with operating income rising from $1.5 million to $3.2 million; and retail sales rose from $11.9 million to $14.3 million, with an operating income of $2.9 million slipping to an operating loss of $239,000 for the quarter.
