NEW YORK — Soft demand at retail ended up pushing down sales at Mossimo Inc., which cut deeply into second-quarter earnings.
The company on Thursday said income for the three months ended June 30 fell by 45.4 percent to $1 million, or 6 cents a share, from $1.8 million, or 12 cents, in the comparable year-ago quarter. Total revenues were down 9.5 percent to $6.2 million from $6.9 million, which included a 15.7 percent drop in licensing income and design service fees to $5.8 million from $6.9 million. The company reported $424,000 in product sales for the quarter.
Mossimo Giannulli, chairman and chief executive officer, said in a statement, “While we continue to make positive strides in our business, our results for the quarter were impacted by softer than expected consumer demand at retail. We are confident that our brand equity remains strong and our prospects for future expansion are intact.”
He noted that the company’s licensing agreements with Zellers in Canada and Intermoda in Mexico offer the firm opportunities for long-term growth.
In the six months, the apparel firm’s income fell by 32.3 percent to $2.2 million, or 14 cents a share, from $3.2 million, or 21 cents, last year. Total revenues dipped 2.2 percent to $12.4 million from $12.7 million.
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