News Feed Item

RG Barry Brands Reports 2nd Quarter/1st Half Performance

Reaffirms Outlook for 2014 Revenue

PICKERINGTON, Ohio, Feb. 4, 2014 /PRNewswire/ -- R.G. Barry Corporation (NASDAQ: DFZ), today said that its second-quarter/first-half consolidated performance for fiscal year 2014 remained consistent with its previously discussed expectations for the period.

For the quarter ended December 28, 2013, the Company reported, on a consolidated basis:

  • Net earnings of $6.1 million, or $0.53 per diluted share, up versus $5.3 million, or $0.46 per diluted share, in the second quarter of fiscal 2013;
  • Net sales of $48.0 million compared to $48.5 million in the equivalent period last year;
  • Gross profit as a percent of net sales at 42.7%, up 30 bps from 42.4% one year ago; and
  • Selling, general and administrative expenses declined 9.5% to $10.8 million versus $11.9 million in the second quarter last year.

Consolidated six-month results included:

  • Net earnings of $10.9 million, or $0.94 per diluted share, compared with $11.4 million, or $0.99 per diluted share, in the first half of fiscal 2013;
  • Net sales of $89.9 million versus net sales of $95.7 million one year ago;
  • Gross profit as a percent of net sales at 44.4% increased 110 bps from 43.3% in the first half of fiscal 2013; and
  • Selling, general and administrative expenses of $22.7 million were relatively flat versus $22.9 million in the comparable period one year ago.

Footwear Segment
First half footwear net sales declined 7.5% to $71.9 million reflecting soft July-to-December 2013 retail business primarily in department store and off-price channels, partially offset by increased warehouse club and international shipments. Footwear net sales for the second quarter were $39.1 million versus $39.5 million in the equivalent period last year.

Footwear segment gross profit as a percentage of first half net sales rose 90 basis points to 41.4% from 40.5% in the comparable period of fiscal 2013; and quarterly gross profit as a percentage of net sales expanded 30 bps to 40.0% versus one year ago. The increases were primarily reflective of favorable changes in product and customer mix.

The segment generated first half operating profit of $19.6 million, down $0.4 million versus the first half last year as a result of lower sales volume partially offset by lower expenses in a variety of areas. Second quarter operating profit of $10.7 million increased 12.4% from $9.5 million in the second quarter of fiscal 2013. The increased quarterly operating profit principally reflected lower expenses in a number of categories, including reduced incentive bonus accruals.

Accessories Segment
Six-month net sales in the Accessories segment were flat at $18.0 million. For the quarter, accessories net sales decreased 1.3% to $8.9 million versus one year ago. The decline primarily resulted from the previously discussed strategic decision to reduce lower margin business in the off-price channel.

Accessories gross profit rose 2.5% to $10.2 million, and gross profit as a percentage of net sales expanded 140 basis points to 56.8% compared to the equivalent period a year ago. Quarterly gross profit and margins were relatively flat at $4.8 million or 54.4% of net sales.

Segment operating profits of $1.0 million for the quarter and $1.8 million for the half were off versus last year by 33% and 44% respectively, and showed the impact of the Company's continuing investment in its long-term growth strategy for its Accessories segment.

Management Comments
"We continue to lead our peer group in many key performance metrics despite the challenging retail environment during the holiday selling season," said Greg Tunney, President and Chief Executive Officer.  "Our proven model and operational excellence permitted us to generate healthy profitability, while investing significant resources in our brands and building a business that will continue to meet the challenges of both today and tomorrow."

Jose Ibarra, Senior Vice President Finance and Chief Financial Officer added, "We ended the half with a good retail sell-through. Our strategy of continuing to eliminate underperforming or lower margin components of the business impacted the top line, but gross margin as a percent of net sales improved by 110 basis points, despite the highly-promotional retail environment.

"We continue to experience economic headwinds and a challenging retail environment. While the Company is financially strong and well positioned to meet its long-term goals, these factors have led us to reaffirm our view that consolidated revenue this year will be down slightly compared with fiscal 2013," Mr. Ibarra said.

Mr. Tunney concluded, "We remain committed to investing in long-term growth strategies for areas such as international and ecommerce, both of which grew during the first half, and to actively pursuing growth through category appropriate acquisitions. While the support of these strategies is expected to negatively impact profitability in the short-term, including the current fiscal year, we are confident that, over time, they will generate levels of growth and profitability that will keep RG Barry Brands a leader in the accessories marketplace."

Conference Call/Webcast Today
R.G. Barry Corporation senior management will conduct a conference call for all interested parties at 9:00 a.m. Eastern Standard Time today. Management will discuss the Company's performance, its plans for the future and will accept questions from participants. The conference call is available at (877) 870-4263 in the U.S., (855) 669-9657 in Canada and +1 (412) 317-0790 internationally until five minutes before starting time. To listen via the Internet, log on at: http://www.videonewswire.com/event.asp?id=97786.

Replays of the call will be available several hours after its completion. The audio replay can be accessed through 9 a.m. on Feb. 18, 2014, by calling (877) 344-7529 in the U.S. or (412) 317-0088 internationally and using passcode 10039882. A written transcript and audio replay of the call will be posted for at least 12 months at the Investor Room section of our website.

About RG Barry
RG Barry develops accessories brands that provide fashionable, solution-oriented products for a great life. Our primary brands include: Dearfoams slippers dearfoams.com; baggallini handbags, totes and travel accessories baggallini.com; and Foot Petals premium insoles and comfort products footpetals.com.  To learn more, visit us at rgbarry.com.

Forward-Looking Statements
Some of the disclosures in this news release contain forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by forward-looking words such as "may," "expect," "could," "should," "anticipate," "believe," "estimate," or words with similar meanings. Any statements that refer to projections of our future performance, anticipated trends in our business and other characterizations of future events or circumstances are forward-looking statements. These statements, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995, are based upon our current plans and strategies and reflect our current assessment of the risks and uncertainties related to our business. These risks include, but are not limited to: our continuing ability to source products from third parties located within and outside North America; competitive cost pressures; the loss of retailer customers to competitors, consolidations, bankruptcies or liquidations; shifts in consumer preferences; the current softness in the retail markets; the impact of general economic conditions on consumer spending; the highly seasonal nature of our footwear business; inaccurate forecasting of consumer demand; difficulties liquidating excess inventory; disruption of our supply chain or distribution networks; the impact of the loss of key management; our ability to secure and protect trademarks and other intellectual property; our ability to implement new enterprise resource information systems; a failure in or a breach of our operational or security systems or infrastructure, or those of our third-party suppliers and other service providers, including as a result of cyber-attacks; and our investment of excess cash in certificates of deposit and other variable rate demand note securities. You should read this news release carefully because the forward-looking statements contained in it (1) discuss our future expectations; (2) contain projections of our future results of operations or of our future financial condition; or (3) state other "forward-looking" information. The risk factors described in this news release and in our filings with the Securities and Exchange Commission (the "SEC"), in particular "Item 1A. Risk Factors" of Part I of our Annual Report on Form 10-K for the fiscal year ended June 29, 2013 (the "2013 Form 10-K"), give examples of the types of uncertainties that may cause actual performance to differ materially from the expectations we describe in our forward-looking statements. If the events described in "Item 1A. Risk Factors" of Part I of our 2013 Form 10-K occur, they could have a material adverse effect on our business, operating results and financial condition. You should also know that it is impossible to predict or identify all risks and uncertainties related to our business. Consequently, no one should consider any such list to be a complete set of all potential risks and uncertainties. Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update any forward-looking statement to reflect circumstances or events that occur after the date on which the statement is made to reflect unanticipated events, except as required by applicable law. Any further disclosures in subsequent news releases and filings with the SEC should also be considered.

–financial charts follow–



(in thousands of dollars, except for per share data)





Weeks Ended

Weeks Ended

Weeks Ended

 Weeks Ended



% Increase



% Increase

December 28, 2013

December 29, 2012


December 28, 2013

December 29, 2012


Net sales

$                    47,997

$                    48,505


$                    89,908

$                    95,737


Cost of sales







   Gross profit







     Gross profit (as percent of net sales)





Selling, general and administrative expenses







    Operating profit







Other income





Interest (expense), net







     Earnings, before income taxes







Income tax expense







Net earnings

$                      6,114

$                      5,301


$                    10,877

$                    11,435


Earnings per common share


$                         0.53

$                         0.47


$                         0.95

$                         1.01



$                         0.53

$                         0.46


$                         0.94

$                         0.99


Weighted average number of common shares outstanding












 (in thousands of dollars) 




December 28, 2013

December 29, 2012

June 29, 2013


Cash  & short-term investments

$                    43,598

$                    41,415

$                    39,500

Accounts receivable, net








Prepaid expenses and other current assets




   Total current assets




Net property, plant and equipment




Other assets




   Total assets

$                  135,128

$                  131,943

$                  130,253


Accounts payable




Other current liabilities




    Total current liabilities




Long-term debt




Accrued retirement costs and other




Shareholders' equity, net




   Total liabilities & shareholders' equity

$                  135,128

$                  131,943

$                  130,253


SOURCE R.G. Barry Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
So you think you are a DevOps warrior, huh? Put your money (not really, it’s free) where your metrics are and prove it by taking The Ultimate DevOps Geek Quiz Challenge, sponsored by DevOps Summit. Battle through the set of tough questions created by industry thought leaders to earn your bragging rights and win some cool prizes.
SYS-CON Events announced today that Transparent Cloud Computing (T-Cloud) Consortium will exhibit at the 19th International Cloud Expo®, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The Transparent Cloud Computing Consortium (T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data proces...
Between the mockups and specs produced by analysts, and resulting applications built by developers, there exists a gulf where projects fail, costs spiral, and applications disappoint. Methodologies like Agile attempt to address this with intensified communication, with partial success but many limitations. In his session at @DevOpsSummit at 19th Cloud Expo, Charles Kendrick, CTO at Isomorphic Software, will present a revolutionary model enabled by new technologies. Learn how business and deve...
In his session at Cloud Expo, Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, will provide economic scenarios that describe how the rapid adoption of software-defined everything including cloud services, SDDC and open networking will change GDP, industry growth, productivity and jobs. This session will also include a drill down for several industries such as finance, social media, cloud service providers and pharmaceuticals.
Enterprises have been using both Big Data and virtualization for years. Until recently, however, most enterprises have not combined the two. Big Data's demands for higher levels of performance, the ability to control quality-of-service (QoS), and the ability to adhere to SLAs have kept it on bare metal, apart from the modern data center cloud. With recent technology innovations, we've seen the advantages of bare metal erode to such a degree that the enhanced flexibility and reduced costs that cl...
SYS-CON Events announced today that Niagara Networks will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
In today's uber-connected, consumer-centric, cloud-enabled, insights-driven, multi-device, global world, the focus of solutions has shifted from the product that is sold to the person who is buying the product or service. Enterprises have rebranded their business around the consumers of their products. The buyer is the person and the focus is not on the offering. The person is connected through multiple devices, wearables, at home, on the road, and in multiple locations, sometimes simultaneously...
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue an...
Intelligent machines are here. Robots, self-driving cars, drones, bots and many IoT devices are becoming smarter with Machine Learning. In her session at @ThingsExpo, Sudha Jamthe, CEO of IoTDisruptions.com, will discuss the next wave of business disruption at the junction of IoT and AI, impacting many industries and set to change our lives, work and world as we know it.
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
Established in 1998, Calsoft is a leading software product engineering Services Company specializing in Storage, Networking, Virtualization and Cloud business verticals. Calsoft provides End-to-End Product Development, Quality Assurance Sustenance, Solution Engineering and Professional Services expertise to assist customers in achieving their product development and business goals. The company's deep domain knowledge of Storage, Virtualization, Networking and Cloud verticals helps in delivering ...
In the 21st century, security on the Internet has become one of the most important issues. We hear more and more about cyber-attacks on the websites of large corporations, banks and even small businesses. When online we’re concerned not only for our own safety but also our privacy. We have to know that hackers usually start their preparation by investigating the private information of admins – the habits, interests, visited websites and so on. On the other hand, our own security is in danger bec...
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
OnProcess Technology has announced it will be a featured speaker at @ThingsExpo, taking place November 1 - 3, 2016, in Santa Clara, California. Dan Gettens, OnProcess’ Chief Analytics Officer, will discuss how Internet of Things (IoT) data can be leveraged to predict product failures, improve uptime and slash costly inventory stock. @ThingsExpo is an annual gathering of IoT and cloud developers, practitioners and thought-leaders who exchange ideas and insights on topics ranging from Big Data in...