Specialty Catalog Corp., South Easton, MA, had first-quarter 1999 net sales of just under $13.3 million, down only slightly from net sales of just over $13.3 million in first-quarter 1998. The company had income of $500,000 for the quarter, compared with losses of $438,000 a year earlier.
Part of the increase in net income resulted from the company’s decision to eliminate unprofitable advertising outlets for its Paula Young program. Resources previously devoted to it are being used to further Specialty Catalog’s ongoing Internet presence, as well as customer reactivation programs.
Also helping the bottom line was an increase in gross margin, from 63.7% to 65.6%, which came about partly as the company turned from a low-price focus in favor of expanded product offerings.
Specialty Catalog Corp is a direct marketer of wigs and other hair care and lifestyle products.
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