NEW YORK — Mossimo Inc. reported a 53 percent increase in first-quarter profits and a 39 percent rise in revenues, due to demand for its fashions at discount retailer Target.
In the three months ended March 31, the Santa Monica, Calif.-based company earned $1.8 million, or 12 cents a share, versus $1.2 million, or 8 cents, a year ago. Analysts, however, had been expecting a profit of 13 cents in the latest quarter.
Net revenues increased to $8.7 million from $6.2 million a year ago.
“Our results for the first quarter were primarily driven by improvements in our Target business, partially offset by challenges at Modern Amusement and Zellers,” said Edwin Lewis, president and co-chief executive officer of Mossimo, in a Monday statement, released after the close of the stock market. “We are working hard to fine-tune our merchandising and distribution strategies, and we remain focused on executing our business plan.”
Shares of Mossimo closed at $4.26, unchanged in Monday’s Nasdaq session.