NEW YORK — Cuts in expenses allowed Marisa Christina Inc. to trim second-quarter and first-half losses slightly despite large drops in revenues.
In the three months ended June 30, the New York-based better apparel producer had a net loss of $1.37 million, or 19 cents a share, versus a year-ago loss of $1.4 million, also 19 cents. Sales declined 33.4 percent to $3.3 million from $4.9 million in the year-ago quarter.
In the quarter, cost of goods sold declined 30.8 percent, to $2.9 million from $4.2 million, and selling, general and administrative expenses dropped 17.3 percent, to $1.8 million from $2.2 million.
Noting that the second quarter is historically weak for the firm, a sweater and knitwear specialist, Michael Lerner, chairman, commented in a statement, “This year was especially impacted by the anxiety following Sept. 11. We are especially gratified that in spite of our lower sales volume in the quarter and first half we have posted improved bottom-line results. We feel that second-half volume will rebound to levels close or equal to 2001’s second half.”
Based on sales expectations, reduced expenses and improved margins, he projected diluted earnings per share of 20 to 35 cents for the full year.
For the six months, the net loss was $1.1 million, or 15 cents a diluted share, compared with $1.2 million, or 16 cents, a year earlier. Sales totaled $9.5 million, 29.9 percent lower than the $13.6 million registered during the comparable 2001 period.