LINCOLN – Personal and business accessories maker A.T. Cross Co. posted a second-quarter profit of $635,000, or 4 cents per share, on sales that fell 13.7 percent compared with the same period last year, when the company posted a profit of $1.87 million, or 12 cents per share.
From April 1 to July 4, A.T. Cross (Nasdaq: ATX) said its revenue was $37.3 million, compared with the year-ago sales total of $43.2 million. The company said it lost $314,000, or 2 cents per share, in the first six months of 2009, compared to earnings of $2.48 million, or 16 cents per share, in the first half of last year.
Beyond Cash Donations: How New Forms of Giving Are Transforming Not-for-Profit Accounting
Evolving Funding Landscape for Not-for-Profits Not-for-profit organizations are being asked to do more with less,…
Learn More
“During the second quarter, the recession continued and consumers and retailers remained very conservative with regard to purchasing discretionary products,” David G. Whalen, A.T. Cross’ president and CEO, said in a statement released yesterday after the close of the markets.
The company’s Cross Accessory Division posted revenue of $20.8 million, down 19.8 percent compared with a year earlier but not as steep a drop as in the second quarter, when the division’s sales were off nearly 30 percent year over year. Revenue from its Cross Optical division declined 4.4 percent to $16.5 million compared with the second quarter of 2008.
The company’s gross margin declined slightly year over year, from 56.4 percent to 54.7 percent. The company also reduced its quarterly operating expenses to $18.9 million, compared with $21.2 million a year ago.
“Importantly, we continued to invest in our brands and manage our inventory and expenses appropriately,” Whalen said. “We are confident that this approach is building share and will result in growth in revenue and profit once the economy turns.”
A. T. Cross said the results for the first six months of 2009 included a restructuring charge of 4 cents per share that resulted from layoffs at its Lincoln manufacturing facility following the exporting of some jobs there to China. The company also closed several retail stores last year.
A.T. Cross said it laid off a total of 81 employees in the U.S. and U.K. as a result of the restructuring.
The company again declined to provide guidance on its earnings expectations for the rest of the year, citing the “uncertain economic climate,” but said it does expect to make a profit this year and increase its cash on hand.
In the first quarter, A. T. Cross posted a loss of $900,000, or 6 cents per share, as its sales fell 15 percent year over year.
A.T. Cross Co. (Nasdaq: ATX) is a designer and maker of branded personal and business accessories, including Cross-branded writing instruments, leather goods and time pieces, as well as sunglasses under the Costa Del Mar and Native Eyewear brands. Additional information is available at Cross.com.
