Candie's, Inc. Reports First Quarter Fiscal 2002 Results.Business Editors VALHALLA, N.Y.--(BUSINESS WIRE)--May 31, 2001 Candie's, Inc. (Nasdaq NMS See NetWare Management System. symbol: CAND) ("The Company") today announced financial results for the first quarter fiscal 2002 ended April 30, 2001. FIRST QUARTER OPERATING RESULTS: For the first quarter ended April 30, 2001(the "first quarter of Fiscal 2002"), the Company reported net revenues of $23.9 million as compared to $25.5 million in the first quarter of the prior year. Net income was $393,000, or $0.02 per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, as compared to net income of $465,000, or $0.02 per fully diluted share in the first quarter of the prior year. The revenue decrease resulted primarily from the discontinuance Cessation; ending; giving up. The discontinuance of a lawsuit, also known as a dismissal or a non-suit, is the voluntary or involuntary termination of an action. DISCONTINUANCE, pleading. A chasm or interruption in the pleading. 2. of the Company's handbag line and a decrease in the sales of Kid's footwear Footwear consists of garments worn on the feet. It is worn for a variety of reasons, including protection against the environment, hygiene and adornment. Usually, socks and other hosiery are worn between the feet and the footwear, except for sandals and flip flops (thongs). , partially offset by increases in Candie's retail store sales and licensing income. Gross profit increased $1.0 million, or 14.2%, to $7.7 million as compared to $6.7 million in the first quarter of the prior year. The gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. increased, as a percentage of net revenues, by 5.7% to 32.1% as compared to 26.4% in the first quarter of the prior year. Candie's retail store sales increased $800,000, to $1.6 million, as compared to $800,000 in the first quarter of the prior year. Retail comparable store sales were up 42.0% in the first quarter of Fiscal 2002. Licensing income increased $200,000, to $1.2 million in the first quarter of Fiscal 2002, as compared to $1.0 million in the comparable prior year quarter. In commenting on the results, Neil Cole Neil Cole (born 1 March 1972) is an English television presenter, comedian, radio broadcaster and actor. Early life Cole was born in Bristol in 1972, and attended King Edward Grammar School in Chelmsford. He studied English & French Literature at Bristol University. , Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. stated, "The Company's focus on the Candie's brand and products have produced very positive trends, including improved gross margins, a significant increase in retail store comp comp See comparison. sales and an improved back order. Our powerful brand continues to gain momentum, as evidenced by increased licensing revenues and improved penetration in key stores. We are very excited about these favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. indicators and believe that they set the tone for future growth and profitability." Candie's is a leading designer and marketer of young women's footwear, apparel and accessories. The Company distributes its products through better department and specialty stores Noun 1. specialty store - a store that sells only one kind of merchandise shop, store - a mercantile establishment for the retail sale of goods or services; "he bought it at a shop on Cape Cod" nationwide, as well as through ten company-owned stores and specialty stores internationally. Candie's also owns and markets footwear, accessories and apparel under the Bongo trademark. Candie's also arranges for the manufacture of footwear products for mass market and discount retailers under the private label brand of the retailer or other trademarks owned or licensed by Candie's. Additionally, the Candie's brand is licensed for the manufacture, sale and distribution of fragrances and cosmetics cosmetics, preparations externally applied to change or enhance the beauty of skin, hair, nails, lips, and eyes. The use of body paint for ornamental and religious purposes has been common among primitive peoples from prehistoric times (see body-marking). , handbags, sunglasses sunglasses A tinted pair of glasses used to ↓ light arriving at the eye, which are labeled according to the amount of UV light blocked; nonprescription glasses are classified according to use and amount of UV radiation blocked Sunglasses , watches and apparel. Candie's Inc. operates www.candies.com, a leading community for teens on the web. For investor information please visit the corporate web site at www.candiesinc.com. SAFE HARBOR Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and OF 1995. The statements which are not historical facts contained in this press release are forward looking statements that involve a number of known and unknown risks, uncertainties and other factors all of which are difficult or impossible to predict and many of which are beyond the control of the Company, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Such factors include, but are not limited to, uncertainty regarding continued market acceptance of current products and the ability to successfully and market new products particularly in light of rapidly changing fashion trends, the impact of supply and manufacturing constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. or difficulties relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's dependence on foreign manufacturers, uncertainties relating to customer plans and commitments, competition, uncertainties relating to economic conditions in the markets in which the Company operates, the ability to hire and retain key personnel, the ability to obtain capital, the risks of regulatory proceedings and litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , the risks of trademark protection, the uncertainty of marketing and licensing acquired trademarks, other risks detailed in the Company's Securities and Exchange Commission filings, and uncertainty associated with the impact on the Company in relation to recent events discussed in the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for Fiscal 2001. The words "believe", "expect", "anticipate", "seek" and similar expressions identify forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Readers are cautioned not to place undue reliance on these forward looking statements, which speak only as of the date the statement was made.
Candie's, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(000's omitted, except per share data)
Three Months Ended
April 30,
2001 2000
---- ----
Net sales $ 22,652 $ 24,446
Licensing income 1,202 1,032
--------- ---------
Net revenue 23,854 25,478
Cost of goods sold 16,187 18,763
--------- ---------
7,667 6,715
Operating expenses:
Selling, general and
administrative 6,884 5,792
Special charges 65 97
--------- ---------
6,949 5,889
--------- ---------
Operating income 718 826
Other expenses:
Interest expense - net 325 511
Equity (income) loss
in joint venture - (150)
--------- ---------
325 361
--------- ---------
Income before income taxes 393 465
Provision (benefit) for
income taxes - -
--------- ---------
Net income $ 393 $ 465
========= =========
Earnings per share:
- Basic $ 0.02 $ 0.02
========= =========
- Diluted $ 0.02 $ 0.02
========= =========
Weighted average # of
common shares:
- Basic 19,135 19,187
========= =========
- Diluted 22,392 21,782
========= =========
Selected Balance
Sheet Data: 4/30/2001 1/31/2001
--------- ---------
Current Assets $ 29,028 $ 23,772
Current Liabilities $ 29,303 $ 24,472
Stockholders' Equity $ 25,140 $ 24,745
Working Capital $ (275) $ (700)
Current Ratio 0.99:1 0.97:1
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