MOVIE STAR OPERATING PROFIT UP 84.5 PERCENT IN FIRST QUARTER
NEW YORK — Movie Star Inc., helped by higher sales and reduced expenses, reported operating profit in the first quarter ended Sept. 30 rose 84.5 percent.
In the quarter, the manufacturer earned $607,000 or 4 cents a share, against $329,000, or 2 cents, a year earlier. An $861,000 accounting gain boosted year-ago net to $1.2 million, or 8 cents.
Sales at the innerwear manufacturer and operator of 25 retail stores rose 8.4 percent to $32.4 million from $29.9 million.
Mark M. David, chairman and chief executive officer, attributed the improvement to “higher gross profits, lower overhead and reduced inventory levels.” He said he expects further improvements in these areas, as well as continued sales growth. David projected the company will turn a profit for the year.
In the year ended June 30, Movie Star, after a $3.8 million charge for the restructuring of its Sanmark division, lost $3 million.
Gross profit in the most recent quarter rose 5 percent, while selling, general and administrative expenses declined 6 percent, the company said.
The restructuring of Sanmark, its largest division, has been substantially completed and it now produces merchandise only against orders, the company said, adding that inventory levels are down $7 million.
— Fairchild News Service