NEW YORK — Apparel and footwear licensing company Candie’s Inc. significantly narrowed its fourth-quarter loss, despite posting a 61.9 percent decrease in total revenues. Results in the full year swung to a net profit from a loss last year.
In the two months ended Dec. 31, Candie’s had a net loss of $912,000, or 3 cents a diluted share, compared with a loss of $6.4 million, or 25 cents, in the year-earlier, three-month period. The company previously changed its fiscal year-end date to Dec. 31 from Jan 31, making the latest fourth quarter and full year each one month shorter.
Candie’s consolidated operating net loss in the fourth quarter was $314,000 before certain charges, which compared with a loss of $4.8 million a year ago. Charges in the latest quarter stem in part from legal fees related to Candie’s former jeanswear operation, Unzipped Apparel LLC, which has been transitioned to a license arrangement.
Total quarterly revenues fell to $7.7 million from $20.2 million last year. Licensing revenues made up $1.8 million of the quarter’s total, an increase of 4.5 percent, while net sales dropped 68.2 percent to $5.9 million.
New York-based Candie’s licenses the Candie’s, Bongo and Badgley Mischka trademarks on women’s apparel, footwear and accessories. Last December, the company inked a Candie’s licensing deal with Kohl’s Corp. that will launch this fall. The company acquired Badgley Mischka last October and said it is planning four new licenses and additional categories for the brand.
“Our transition to a licensing and marketing company is finally complete,” said Neil Cole, president and chief executive officer of Candie’s, in a written statement Wednesday. “We are now fully focused on generating the maximum revenue from our three valuable brands and believe that we have positioned the company to achieve sustained growth and profitability in 2005 and beyond.”
In the full year, Candie’s reported a net profit of $241,000, or 1 cent, versus a loss of $11.3 million, or 45 cents, in 2003. Total revenues decreased 47.5 percent to $69 million.