GUESS ACCESSORIES LAUNCH, TAX BENEFIT SWELL SWANK PROFITS 91.8 % IN 4TH QUARTER
ATTLEBORO, Mass. — Sparked by the launch of Guess accessories and a tax benefit, Swank Inc. reported profits jumped 91.8 percent in the fourth quarter ended Dec. 31.
The firm rolled out its licensed Guess women’s and men’s jewelry and men’s personal leather goods in the fall, and Marshall Tulin, Swank president, credited the line, along with growth in its established product lines, for the 13.2 percent sales hike posted for the entire year. Swank also makes various men’s and women’s accessories under such labels as Colours by Alexander Julian, Pierre Cardin, L’Aiglon, Anne Klein, Anne Klein II and Bonjour, as well as under its own name.
Earnings in the year’s final quarter amounted to $4.97 million, or 31 cents a share, against $2.6 million, or 15 cents, a year earlier. The latest quarter included a tax benefit of $1.2 million from a tax-loss carryforward against a tax accrual of $245,000. Sales advanced 13.3 percent to $48.6 million from $42.9 million.
In the year, earnings rose to $5.6 million, or 34 cents, from $3.3 million, or 19 cents, a year before. The latest year included a $1.04 million tax benefit, while the prior year included a $477,000 accounting credit. Sales rose 13.2 percent to $143.5 million from $126.8 million. — Fairchild News Service