NEW YORK--Hurt by lower prices and weak sales, Garan Inc. reported earnings tumbled 74.3 percent as sales slumped 16.4 percent in the third quarter. Earnings for the quarter ended June 30 dropped to $884,000, or 17 cents a share, from $3.4 million, or 68 cents a year ago. Sales fell to $35.4 million from $42.3 million.
In the nine months, earnings declined 42.2 percent to $6.4 million, or $1.27, from $11.2 million, or $2.20 a year earlier. Sales slipped 8.1 percent to $117.6 from $128 million. Garan attributed the poor figures to lower selling prices and reduced sales due to a competitive market. The company added that it expects these conditions to continue in the fourth quarter.
Garan stock dropped 1 5/8 to 22 1/4 in trading Friday on the American Stock Exchange.
Garan manufactures apparel for men and women, and Garanimals and Disney licensed apparel for children. The company also has a sports licensing segment using logos of the NFL, NHL and NBA.More than half of Garan's sales in the last fiscal year were to Wal-Mart Stores.

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