LESLIE FAY REPORTS PROFIT
NEW YORK — The Leslie Fay Co. Inc., which earlier in the week revealed plans to go private, reported fourth-quarter profits of $3.6 million, or 63 cents a diluted share.
This compares to losses of $75,000, or 1 cent, a year ago. During the quarter, Leslie Fay realized an aftertax gain of $6.3 million on the sale of its Hue trademark.
Sales for the period ended Dec. 30 rose 0.5 percent, to $39.4 million from $39.2 million a year ago.
Excluding the recently acquired Liz Claiborne Dress and Cynthia Steffe licenses, the company said net sales fell 18.7 percent, to $31.9 million. The sales decline resulted from the combination of the Leslie Fay Sportswear and Haberdashery by Leslie Fay sportswear product lines into a single line, the company said, noting that the consolidation has enhanced profitability.
Including the $6.3 million gain, net income for the year dropped 7.5 percent, to $7.7 million, or $1.44 a diluted share, from $8.3 million, or $1.39, during 1999.
Sales for the year were up 7.7 percent, to $212.7 million from $197.4 million a year ago.