Health & Fitness
Health and Fitness
Health and Fitness
Tue, June 8, 2010
Mon, June 7, 2010 Signature Eyewear Reports Second Quarter Earnings; 18th Consecutive Profitable Quarter
LOS ANGELES, CA--(Marketwire - June 7, 2010) - Signature Eyewear, Inc. (
For the six months ended April 30, 2010, compared to the comparable period in fiscal 2009, net income decreased to $299,000 from $415,000 while net sales declined to $11.0 million from $12.1 million.
Net sales continue to be adversely affected by the recession. While unit sales have remained relatively constant between the 2009 and 2010 periods, the average sales price of Signature's frames has declined as consumers purchase lower cost frames and the Company offers higher customer discounts. In addition, net sales in the 2010 periods have been impacted by production delays at the Company's Chinese frame manufacturers, due primarily to labor shortages. These labor shortages may result in production delays for at least the next several quarters and higher frame prices.
The decrease in net income in the 2010 periods was due primarily to net sales and a lower gross margin partially offset by lower operating expenses and interest expense.
"We are continuing to contain our costs during a very challenging global economy," stated Michael Prince, Chief Executive Officer of Signature. "These efforts, together with the consumer-friendly price structure of our lines, have enabled us to continue to operate profitably and improve our balance sheet in this difficult environment."
The Company has further reduced its debt, from $4.2 million at October 31, 2009, to $3.7 million at April 30, 2010, its lowest level in more than 10 years.
About Signature Eyewear
Signature Eyewear is a leading designer and marketer of prescription eyeglass frames and sunglasses under internationally recognized brand names, including bebe, Carmen Marc Valvo, Cutter and Buck, Hart Schaffner Marx, Hummer, Laura Ashley, Michael Stars and Nicole Miller. Signature Eyewear's products are sold worldwide to opticians, optometrists and ophthalmologists and to optical and retail chains. For information about Signature Eyewear, visit the Company's website at [ http://www.seye.com ].
The above news release contains forward-looking statements. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance, and are subject to a wide range of business risks, external factors and uncertainties, including increasing market interest rates. Actual results may differ materially from those indicated by such forward-looking statements. For additional information, please consult the Company's most recent public filings and Form 10-K for the year ended October 31, 2009. The Company assumes no obligation to update the information contained in this press release, whether as a result of new information, future events or otherwise.
