Broder Bros. Posts Loss on Integration Costs
Trevose, PA-based imprintable sportswear distributor Broder Bros. enjoyed an 11% rise in third-quarter sales, but integration and restructuring costs took their toll on the bottom line.
For the three months ended Sept. 14, Broder lost $1.7 million on $255.6 million in revenue. For the comparable quarter of 2004, it had posted net income of $1.7 million on sales of $231.3 million. Income from operations was $7.8 million for the quarter just ended compared with $9.9 million a year ago.
The restructuring charges, which include lease termination and severance, relate to Broder’s integration of NES Clothing Co., which it bought last year, and Alpha Shirt Co., acquired in 2003.
PC Mall Has Profitable Quarter but…
A quick glimpse shows that Torrance, CA-based PC Mall (Nasdaq: MALL) had a more profitable third quarter this year than last, with net income of $229,000 compared with $210,000 in 2004. But that’s because the company is no longer taking a loss for discontinued operations. Income from continuing operations, however, slid 70% to $229,000 from $766,000 last year.
Net sales showed marginal improvement at $244.0 million, compared with $239.8 million in net sales last year. Commercial net sales grew 5%, but government sales dropped 19% due to “competitive pricing pressures,” according to a statement. Consumer sales fell 16%, primarily because of a 12% reduction in advertising spending and increased competition from direct sales by Apple.
Net Income Jumps 49% at Blue Nile
Seattle-based online jeweler Blue Nile (Nasdaq: NILE) showed a hefty bottom-line improvement on higher sales. Income for the three months ended Oct. 2 was $2.5 million, up 49% from $1.7 million a year ago. Net sales increased 24%, to $42.0 million from $33.9 million.