NEW YORK — Despite a sales decline of 32.3 percent, Movie Star Inc. reported second-quarter profits of $1.3 million, or 9 cents a share, compared with a loss of $1.2 million in 1995, after a $1.2 million loss from abandonment of leased premises.
Gross margins at the innerwear firm for the period ended Dec. 31 rebounded to 26 percent from 19 percent a year ago, reflecting the elimination of the men’s work and leisure shirt business and other low-margin business.
However, because of the elimination of the shirt businesses, sales slumped to $22.1 million from $32.7 million a year ago.
“As a result of all the actions taken in fiscal 1996, we have set the stage for continuing improvements in quarterly performance for fiscal 1997,” Mark M. David, chairman and chief executive officer, said in a statement. “We have devoted ourselves to increasing the efficiency of day-to-day operations, managing costs and increasing margins.”
For the six months, Movie Star earned $1.2 million, or 9 cents, against a loss of $2.3 million, which included the $1.2 million lease loss.
Results in the first quarter included a $560,000 gain from the repurchase of $1.3 million of its subordinated debentures at a discount.
Sales fell 39.3 percent to $35 million from $57.6 million.