STARTER CUTS FOURTH-PERIOD LOSS TO $2.7 MILLION; SALES DIP 0.2%

NEW YORK--Helped by significantly higher margins, Starter Corp. narrowed its loss to $2.7 million in the fourth quarter against a loss of $15.7 million a year-ago. Sales slipped 0.2 percent to $79.5 million from $79.4 million. Gross margins shot up to 31.6 percent of sales from 14.9 percent. The licensed sports apparel manufacturer noted that the latest quarter was boosted by the sales of inventories at better-than-expected margins as well as the sale of current inventory at higher margins than in 1994.
In the year ended Dec. 31, Starter moved back into the black with a profit of $1.2 million, or 5 cents a share, against a loss of $4.8 million a year ago. The loss in 1994 reflects a $20 million charge tied to inventory writedowns and costs associated with the sale of that inventory.
Sales dipped 3.8 percent to $365.1 million from $379.5 million. Gross margins increased to 31.5 percent of sales from 29.6 percent.--Fairchild News Service

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