Kellwood Co. swung into profitability in the second quarter, thanks to lower restructuring and income tax charges.
For the three months ended June 30, the St. Louis-based apparel marketer reported earnings of $7.2 million, or 28 cents a diluted share, compared with a loss of $78.9 million, or $2.84, in the same period a year ago.
While profits increased, sales decreased 2.8 percent to $474.5 million from $488.2 million, driven by losses in women’s sportswear.
Women’s sportswear sales dropped 4.1 percent to $274 million, and men’s fell a more modest 1.9 percent to $117 million from $119 million. Retail cutbacks in the spring-summer open-to-buy for some of Kellwood’s women’s sportswear brands hurt sales. Kellwood said it is implementing plans to revitalize these brands, and it expects increased sales in the second half of the year.
Some brands performed better than last year, including Calvin Klein women’s better sportswear, Koret, Baby Phat by Kimora Lee Simmons and Gerber, according to Robert Skinner, Kellwood chairman, president and chief executive officer.
For the first half of the year, earnings increased to $16.4 million, or 63 cents a share, from a loss of $67.1 million, or $2.40.
Sales fell 4.8 percent to $991.3 million from $1.04 billion.
Kellwood posted results after the stock market closed Thursday.