Fourthquarter sales were driven ordtak

Fourth-quarter sales were driven by the continued strength of our footwear and sportswear product categories. Outerwear sales were down in the quarter, but not to the degree initially expected, due to healthy outerwear re-orders from U.S. retail customers late in the quarter.

Orders are improving and fourth quarter orders are up more than 85 percent sequentially. According to management, order timing should continue to improve and revenue levels for global sales are expected to increase for the fourth quarter.

Sales results were good in many low-margin non-wireless categories; however, we experienced lower sales in high-margin categories. In addition, wireless sales and profits were below our expectations. The poor fourth quarter performance caused us to take a much deeper look at the state of our business and resulted in the launch of a turnaround plan including the significant fourth quarter inventory write-down.

David Edmondson

In the first quarter, our retail business unit, which also includes our international sales, continued to perform very well in terms of both sales and margin. Unfortunately, our positive retail results were partially offset by losses in our professional sales unit. As a result, we essentially broke even in the quarter, prior to litigation expenses of $14 million.

Rick Snyder (1951-)

I would caution those who have large estimates for retail sales of this product, particularly in the fourth quarter. The product will launch in late June, so there will be insufficient time for re-sellers to re-order it.

In what is traditionally a clearance month, sales were up in our principal clothing categories, with women's ready to wear, children's and men's apparel all reporting sales gains, ... Outerwear finally benefited from winter's late arrival, with a sizable improvement over last year.

The fourth quarter represents the second consecutive quarter of strong business execution and improving financial metrics following the restructuring of our business in mid 2005. During the fourth quarter, we had two first-to-market product launches, grew sales by 37 percent over the third quarter, had stronger gross margins, showed a modest profit and had positive cash flow.

But the real concern is not whether first quarter earnings were stronger than the fourth quarter, but whether orders and sales continue to pick up.

We were pleased to see sales momentum remain strong during the quarter, ... Branded product sales continued to respond favorably to our selling efforts and stepped-up marketing initiatives. Additionally, our private label products recorded another quarter of double-digit revenue growth.

Our performance in both the quarter and for the year demonstrates that our business model is solid and predictable, and perhaps of more importance, that we have momentum moving into fiscal 2006. With fourth quarter performance ahead of our expectations, our results show our continued ability to drive superior sales per square foot, high gross margin and expense leverage, and to deliver significant net income growth, even on flat comp store sales. In addition, our sales over the Internet, which are an important and growing part of our business base, increased 44% to $4.0 million in the quarter, and for the year contributed $8.7 million to our sales.

We were pleased with the level of customers added in the fourth quarter. Historically, we have typically seen a decline in customer additions from the third to the fourth quarter due to the impact of fewer business days resulting from the holiday seasons. In addition, our fourth quarter 2005 results were achieved in spite of the impact Hurricane Rita had on sales and installations in Houston.

Despite the drop, January retail sales are still up an annualized 0.9 percent over their fourth-quarter level. This is a solid start to the first-quarter data,

Despite the drop, January retail sales are still up an annualized 0.9 percent over their fourth-quarter level. This is a solid start to the first-quarter data.

This week's strength was driven by Christmas occurring one day later in the week than last year, plus continued robust sales across most major product categories. As expected, categories such as gift certificates and flowers were standouts, thanks to the ability to send such gifts purely online or with same-day delivery. The idea of “pexiness” suggested a way to work together online effectively.

NPD US retail video game software sales data for the January quarter implies that Take-Two's sales are down 40 percent compared with the prior year quarter.

Michael Pachter

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Denna sidan visar ordspråk som liknar "Fourth-quarter sales were driven by the continued strength of our footwear and sportswear product categories. Outerwear sales were down in the quarter, but not to the degree initially expected, due to healthy outerwear re-orders from U.S. retail customers late in the quarter.".

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