Stamford, CT—Although general merchandise cataloger Blair Corp.’ saw second-quarter net sales increase 4%, to $164.1 million from $157.1 million, net income dropped 34%, to $5.5 million from $8.3 million. Net income included a one-time $4.0 million benefit from pretax interest income as a result of a tax settlement. Without the increase, second-quarter income would have been $2.9 million–a 65% decrease. The Warren, PA-based mailer blames its poor earnings on investments it made in its specialty apparel books and its Website.
Despite the costs associated with consolidating warehouses in its direct response business, musical equipment cataloger/retailer Guitar Center (Nasdaq NMS: GTRC), which mails the Musician’s Friend title, managed to post a 20% increase in second-quarter sales. For the three months ended June 30, total sales were $213.4 million, up from last year’s $178.6 million. Second-quarter net income remained flat at $4.1 million.
As it reported earlier, Westlake Village, CA-based Guitar Center’s earnings in its direct response division were hurt by the consolidation of its Medford, OR, and Knoxville, KY, warehouses into its Kansas City fulfillment center. As a result, selling, general and administrative expenses increased to 25.1% of sales for the quarter, compared to 22.4% for the same period last year. Net sales for the direct response division increased 15%, to $33.2 million from $29.0 million. Net sales from retail stores grew 20.4%, to $180.1 million.
In related news, Musician’s Friend CEO Robert Eastman was named to Guitar Center’s board of directors.
Drug research supplies manufacturer/marketer Harvard Bioscience (Nasdaq: HBIO) reported a loss of $5.4 million for the quarter ended June 30, compared to a gain of $964,000 for the second quarter of 2000. Charges include $5.4 million for acquired in-process research and development, $779,000 for stock compensation, and $303,000 for amortization of goodwill and other intangibles. As for sales, Holliston, MA-based HBIO posted a 31% increase, to $9.7 million from $7.4 million last year.