NEW YORK — Candie’s Inc. was back in the black for the second quarter and first six months now that charges related to its exit from the wholesale and retail footwear businesses are behind it and the company’s transition to a licensing business model is almost complete.
The New York-based company reported earnings of $518,000, or 2 cents a diluted share for the three months ended July 31, compared with a loss of $3.8 million, or 15 cents, a year ago. Total revenues fell 31.8 percent to $28.7 million from $42.1 million, which included a 33.9 percent decline in sales to $26.6 million from $40.2 million that was partly offset by a 13.2 percent gain in licensing income to $2.1 million from $1.8 million.
“The conversion of Bongo jeanswear to a license, along with the Candie’s footwear license, will generate additional royalties and profits and eliminate jeanswear SG&A expenses,” Neil Cole, chairman and chief executive officer, said in a statement.
After Candie’s completes the sale of its jeanswear operation to TKO Apparel Licensing Inc., the move to licensing will be finished, though Cole said during a conference call that the process has taken longer than anticipated. The company expects the jeanswear license to generate revenue during the third quarter.
“We are definitely moving in the right direction,” Cole said. The company is involved in discussions to expand its Bongo line to include men’s products, he said.
For the first six months, Candie’s reported earnings of $551,000, or 2 cents a share, compared with a loss of $3.1 million, or 12 cents, in the year-ago period. Total revenues fell by 43 percent to $47.9 million from $84.1 million.
— Ross Tucker