Phoenix Footwear’s sales dipped by 8 percent to $17.3 million in the full year ending Jan. 1 as sales of its Softwalk and H.S. Trask lines declined by 5.0 percent and 65.0 percent respectively. Sales of the Trotters line increased by 2.2 percent.
Sales of the H.S. Trask brand represented 4.4 percent of 2010 revenues compared with 11.5 percent a year earlier. In 2007 and 2008, the company invested in the line. But over the past two years the group has not been able to boost the collection due to the severe national recession and working capital constraints. Phoenix has decided to focus on Trotters and SoftWalk and sell H.S. Trask.
The group’s gross margin was unchanged at 28.0 percent. SoftWalk’s margin decreased to 27.1 percent from 28.4 percent primarily due to the decline in sales. Trotters’ margin narrowed to 28.5 percent from 31.2 percent due to increase in product costs.
Gross margin for H.S. Trask increased to 36.0 percent from 14.4 percent as a result of fewer close out sales. Operating costs were cut to $8.5 million from $12.0 million and the net loss shrank to $1.7 million from $7.0 million a year ago.