Enesco to Report Second Quarter Sales of Approximately $95 Million.ITASCA I·tas·ca A lake of northwest Minnesota. It was identified in 1832 as the source of the Mississippi River. , Ill.--(BUSINESS WIRE)--June 30, 1999-- Enesco Group, Inc. (NYSE NYSE See: New York Stock Exchange : ENC ENC Encoded (File Name Extension) ENC Enclosure ENC Mime-Encoded (virus scanners) ENC Eastern North Carolina ENC Eisenhower National Clearinghouse for Mathematics and Science Education ) announced today that the decline in second quarter sales will be larger than previously expected, due primarily to an unanticipated slow down in demand for "in-stock" orders in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Second quarter 1999 sales are expected to be approximately $95 million versus second quarter 1998 sales of $137 million. As a result of the sales decline, earnings per 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 for the second quarter could be in the range of $ 0.36 - $ 0.39 compared to $ 0.72 in the prior year period.
The Company had previously announced an expected decrease in
sales for the first half due to several factors, namely:
- Significant year-on-year reduction of SKUs due to EVA
profitability analysis;
- Reduction of close-out revenue due to better inventory
management;
- Anticipation of continued reductions in dealer inventory levels;
- Abiding by dealers' later requested ship dates versus shipping
when ready.
However, the Company's everyday "in-stock" re-orders, especially since late May, were significantly lower than recent experience and lower than anticipated due to both softness in the retail giftware market and even more conservative reorder re·or·der v. re·or·dered, re·or·der·ing, re·or·ders v.tr. 1. To order (the same goods) again. 2. To straighten out or put in order again. 3. To rearrange. v. patterns in the Company's dealer network.
Looking forward, two key indicators suggest near-term improvement
of future comparisons of shipments:
- For the first time since the end of the 1998 first quarter, the
Company expects to end this quarter with the same or slightly
increased customer backorders versus the same time last year. As
recently as year-end 1998, the Company's backorders were $28
million below the prior year's same period. This gap has narrowed
due to improvements in supply chain management and significantly
reduced cancellations due to higher quality of orders.
- Comparable year-to-date order intake (excluding close-outs) is
only off 6 percent from the prior year, despite lower SKU counts
and tight credit controls.
"While we are disappointed in the slower than expected recovery of our sales, we remain confident and fully committed (Law) committed to prison for trial, in distinction from being detained for examination. See also: Fully to our strategic plans and initiatives," said Jeff Hutsell, president and chief executive officer. "Our core Precious Moments and Cherished Teddies lines are continuing to show a healthy pattern of both incoming business and consumer demand in all countries and channels due to exciting new products and marketing programs. At the same time, we continue to enjoy progress in our alternative channel strategy of sales growth, but we recognize that these initiatives will take time to fully develop." "In the meantime Adv. 1. in the meantime - during the intervening time; "meanwhile I will not think about the problem"; "meantime he was attentive to his other interests"; "in the meantime the police were notified" meantime, meanwhile , we continue to streamline our processes, remove unnecessary costs and improve customer service through focused prioritization and enhanced technology," Hutsell said. "Most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , we continue to focus on the development of innovative and exciting new products and programs such as our new licensing alliance with the Steiff Company, maker of the world renowned collectible teddy bear plush line, which was announced this past weekend to great collector enthusiasm at the International Collectible Exposition in Chicago." Enesco Group, Inc. is a global marketer of quality branded gifts, collectibles and decorative accents. The Company's product lines include the Precious Moments, Cherished Teddies, Kim Anderson's Pretty as a Picture and Mary Engelbreit brands, among others. Except for the historical information contained herein, the matters discussed in this news release are 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. that involve risks and uncertainties, and actual results could differ materially from the Company's present expectations. A description of the risk factors that could cause such material differences is set forth 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 the year ended December 31, 1997, filed under the Securities Exchange Act of 1934. The Company undertakes no obligation to update or publish in the future any forward-looking information. |
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