Phoenix Footwear : Reports 4Q and Fiscal Year 2013 Results

Phoenix Footwear Group reported results for the fourth quarter and year ended Dec. 28, 2013.

In a release on March 13, the Company said that highlights include:

-Net sales for the fourth quarter of fiscal 2013 increased 40.2 percent to $4.4 million compared to $3.1 million for the fourth quarter of fiscal 2012.

-Consolidated loss from continuing operations for the fourth quarter declined to $128,000 or $0.02 per share compared to a loss of $467,000 or $0.06 per share for the fourth quarter of fiscal 2012

-Reported net income of $70,000 or $0.01 per share for the 12 months of fiscal 2013 compared to net loss of $484,000 for the 12 months of fiscal 2012.

-Net sales for the fiscal year of 2013 increased 14.8 percent to $19.2 million compared to $16.7 million for the fiscal year of 2012.

-Consolidated earnings from continuing operations for the fiscal year improved to $143,000 or $0.02 per share compared to a loss of $437,000 or $0.06 per share for the 2012 fiscal year.

-Earnings before interest, taxes, depreciation and amortization for fiscal year 2013 improved 49.3 percent to $1.15 million compared to $771,000 for fiscal year 2012.

-The Company’s Independent Auditors have removed the “Going Concern” paragraph from their Report as a result of the continuing improvement of the Company’s operating results.

Fiscal 2013

For the fiscal year ended Dec. 28, 2013, net sales increased $2.5 million or 14.8 percent to $19.2 million from $16.7 million when compared to the fiscal year ended Dec. 29, 2012. The increase in net sales for fiscal year 2013 was primarily driven by new product introductions designed to appeal to the broader customer demographic of the Company’s internet-based accounts, the on-time delivery of spring and fall goods, together with an improvement in the customer reorder volume of the Company’s fall product offering.

Gross profit for fiscal 2013 increased $847,000 or 13.5 percent to $7.1 million from $6.3 million when compared to fiscal 2012. Gross profit as a percentage of net sales declined slightly to 37.1 percent from 37.5 percent when compared to fiscal 2012. The decrease in the gross profit as a percentage of net sales was primarily due to an increase in discounts and allowances provided to certain internet-based customers on significantly higher sales and an increase in the reserve for the phase out of various styles.