SunGlass Hut International, Inc., the US eyewear firm, has announced its results for the first quarter of fiscal 1997 ended 3 May 1997. Sales increased 12.6% to US$ 138.3 million from US$ 122.8 millio…
SunGlass Hut International, Inc., the US eyewear firm, has announced its results for the first quarter of fiscal 1997 ended 3 May 1997. Sales increased 12.6% to US$ 138.3 million from US$ 122.8 million for the comparable period in fiscal 1996. There was a negative impact on the results of operations for the first quarter because of the continued weakness of comparable store sales. Reported results for the first quarter decreased to earnings of US$ 292,000, or US$ 0.01 per share, from an income of US$ 7.2 million or US$ 0.13 per share during the first quarter of 1996. Jack B. Chadsey, SunGlass Hut President and CEO, said that the first quarter sales results were negatively impacted by limited consumer interest and unfavourable weather conditions. In addition, clearance markdowns resulting from the firm“s inventory reduction and re-balancing initiatives depressed gross merchandise margins during the first quarter of 1997. He says he is pleased with the progress SunGlass Hut has made during the quarter in its inventory reduction and re-balancing programme. Quarter-end inventory levels are on plan at US$ 135 million. The CEO said that continued new product deliveries and the business initiatives which the company implemented will positively impact the business in the second quarter. During the first quarter of 1996, the Company closed 40 under-performing locations, bringing the total number (including 23 locations closed during the fourth quarter of fiscal 1996) of targeted closings to date to 63 locations. Mr. Chadsey said the firm continues to make progress in its initiative to close under-performing locations. Thus it will improve future results as its resources are directed to more profitable opportunities.