Russ sales grow by nearly one fourth
-- Kids Today, 8/21/2008 10:20:00 AM
Oakland, NJ — Children's product and gift vendor Russ Berrie reported net sales for the second quarter of $87.7 million, an increase of 24 percent over last year’s $70.7 million second quarter. However that includes $22.2 million of sales generated from the acquisitions of LaJobi and CoCaLo in April. Net sales for the company's infant and juvenile segment increased 68.8 percent in the second quarter to $62.2 million, compared to $36.9 million in the second quarter of 2007. In addition to the acquired businesses, that growth includes 8.7 percent organic sales growth from Sassy and Kids Line.
Net sales for the gift segment decreased 24.8 percent to $25.5 million for the second quarter, compared to $33.8 million for the second quarter of 2007, primarily due to falling Shining Stars sales and overall softness in the gift market due to the economic slowdown. Bruce G. Crain, CEO and president, said, "we recently received a positive reception from retailers to the introduction of a wide range of new seasonal and non-seasonal products at major tradeshows, although much lower attendance at the domestic gift tradeshows and ongoing weak demand for discretionary consumer goods indicate we may continue to see pressure on this business near-term. At the same time, we continue to implement and execute strategies to return this business to a profitable industry leadership position."
Russ reported a consolidated net loss of $12.1 million, including about $10 million in unusual charges. Consolidated gross profit in the second quarter was $28.5 million, or 32.5 percent of consolidated net sales, compared to $28.4 million, or 40.1 percent of consolidated net sales, for the second quarter of 2007.
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