TANDY NET DROPS 26.5%
NEW YORK — Decreases in margins and increases in expenses combined to pull Tandy Brands Accessories’ earnings down for the first quarter.
Net income for the three months ended Sept. 30 fell 26.5 percent to $2 million, or 36 cents a share, against $2.8 million, or 48 cents, in the year ago period.
Sales for the quarter ended rose 1.7 percent to $54.2 million compared to $53.3 million a year ago.
Britt Jenkins, president and chief executive, said in a release that “earnings, as expected, were below the prior year’s earnings due to a lower margin sales mix of women’s accessories and increased selling, general and administrative expenses resulting from higher wages, advertising and rent expenses.”
However, he said the company was encouraged by sales increases in both men’s belt and women’s small leather goods as well as by the renewal of its wide-ranging license with Haggar covering the design, manufacture and marketing of accessories under the Haggar and Haggar black Label brand names.
In August, Tandy Brands reported it had signed a license with Levi Strauss & Co. to produce women’s handbags, small leather goods and belts under the Dockers name. Jenkins said in the statement: “Although we do not anticipate Dockers sales until July 2001, this new license offers strong growth potential to our company in a number of key areas, including the branded handbag business, women’s belts and small leather goods.”
Once operational, the Dockers license should help compensate for the March 2000 loss of the Jones New York license, due to Jones Apparel Group’s acquisition of Nine West. Jenkins said, despite the challenging retail environment, the company considered its Rolfs line of men’s and women’s small leather goods and handbags a success and also felt strongly about its “growing placement of private label small leather goods, cold weather accessories and women’s socks.”
The Arlington, Texas-based firm markets fashion accessories, including belts, wallets and handbags, to men, women and children under various national brand names and private labels across the retail sector.