MOSSIMO TAX BREAK: Santa Monica, Calif.-based Mossimo Inc.’s fourth-quarter net income, which included a $6.4 million income tax benefit, climbed 50.7 percent to $5.4 million, or 34 cents a diluted share, from $3.6 million, or 23 cents, a year ago. Before tax benefits in both periods, Mossimo’s loss of $1.1 million in the most-recent quarter compared with year-ago earnings of $399,000. Revenues for the quarter ended Dec. 31 tiptoed up 0.4 percent to $2.6 million from $2.59 million a year ago. Results fell short of expectations, said the firm, primarily because of legal expenses. As reported, the firm was embroiled in arbitration, which it ultimately lost, over certain finder’s fees with Cherokee Inc., which brokered the Target-Mossimo license. Annual sales of Mossimo products at Target rose to nearly $1 billion last year. Recently, the firm extended its agreement with the discounter until Jan. 31, 2006. For the year, earnings increased 51.2 percent to $13.7 million, or 87 cents a diluted share, from $9 million, or 59 cents, a year ago. Revenues ascended 19.3 percent to $19.9 million from $16.7 million in 2001.
This story first appeared in the March 10, 2003 issue of WWD. Subscribe Today.