NEW YORK — Tandy Brands Accessories Inc.’s losses grew nearly 60 percent in the fourth quarter as continuing cutbacks of retail inventories lowered the firm’s sales.
For the three months ended June 30, the net loss mounted to $4.7 million, or 67 cents a diluted share, from $2.9 million, or 43 cents, in the 2007 quarter. Tandy incurred $1.2 million in taxes in the more recent quarter, versus a $1.7 million tax benefit in last year’s period. The loss before income taxes dropped to $3.4 million from $4.6 million.
Net sales dropped 17.2 percent to $30.1 million from $36.4 million a year ago.
“Quite simply, 2008 was one of the most difficult years in the retail consumer industries that I have seen in my 30-plus year career,” said J.S.B. Jenkins, chairman, president and CEO, told a conference call Friday morning. The firm responded to consumer cutbacks and resulting retail inventory reductions by slashing its head count about 20 percent with the elimination of 185 jobs, closing a distribution center in West Bend, Wisc. and outplacing more of its sourcing. In the fourth quarter, this resulted in a 19.8 percent reduction in cost of goods sold, to $20.3 million, and an 11.7 percent cut in selling, general and administrative expenses, to $12.7 million.
Positive developments “that should benefit financial results in 2009 and beyond,” according to Jenkins, included the introduction of small leather goods under the Goodyear license and the addition of The TJX Companies’ T.J. Maxx and Marshalls units to its customer base.
Jenkins reported that the search for his successor as president and CEO is ongoing and that “several qualified candiates” had been interviewed by Tandy’s board. “We hope to announce something in the very near future,” he said.
For the full year, the company reported a net loss of $49.3 million, or $7.18 a diluted share, which included an $18.7 million inventory writedown and a $17.8 million impairment charge. In 2007, the Arlington, Tex.-based firm earned $1.9 million, or 28 cents. Net sales were off 23.8 percent to $149.3 million from $195.8 million.
M.C. Mackey, CFO, reported that belts accounted for 59 percent of annual sales; small leather goods, primarily wallets, for 19 percent; gift accessories for 14 percent, and women’s handbags and other products for the remaining 8 percent. Men’s made up 80 percent of volume and women’s 20 percent.
Gross margin declined to 21.9 percent of sales from 35.7 percent a year earlier.
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye
“It’s passion that helps get anybody to a certain point and it’s what’s propelled me,” said Kith founder @ronniefieg, one of WWD’s 40 under 40: a group of industry notables who are changing the face of retail, fashion and beauty. Fieg, who opened a Manhattan flagship on October 7, began his career at age 13 as a stock boy and salesman for footwear chain David Z. “I think staying true to [my] beliefs, hard work and passion have gotten me to where [Kith] is today.” See the rest of the 40 at WWD.com. (📷: @vsteves) #wwd40
25-year-old @samweaving is about to break out this fall, starring in Netflix’s horror film “The Babysitter,” fittingly out today on Friday the 13th. That’s not the only place you’ll be seeing her, though — Weaving’s got a role Showtime’s “SMILF” and another alongside Frances McDormand and Woody Harrelson in “Three Billboards Outside Ebbing, Missouri.” Though she’s got a full plate at the moment, there’s one role she’s got her eye on: Marilyn Monroe. “I’m a little too young at the moment, but it’s on my bucket list,” the actress told WWD (📷: @dandoperalski) #wwdeye
BFF's Poppy Jamie and Suki Waterhouse celebrated the launch of their bag line Pop x Suki at Nordstrom last night. "The line is really about our friendship, and how we are so different but complement each other," said Waterhouse. 👯 (📷: Katie Jones) #wwdeye
After designing the new @louisvuitton and @bulgariofficial flagships and a @chanelofficial boutique opening in Japan, @petermarinoarchitect has another project on his plate: The Lobster Club. Located in the Seagram Building, it’s the famed architect’s first restaurant project in New York, serving up modern Japanese brasserie-style cuisine. Bronze hues, bespoke material detailing, blush and chartreuse tones and a heavy emphasis on Picasso can be seen throughout. Mark your calendars for Nov. 1 for the much-anticipated opening. (📷: @clint_spaulding) #wwdeye