Hartmarx shares surge in after hours on Q2 results
Shares of Hartmarx Corporation (NYSE: HMX) surged 20.66% or $1.37 to $8.00 in after-hours trading on Wednesday after the producer and marketer of business, casual and golf apparel announced results for its second quarter after the close.
For the second quarter ended May 31, 2007, net earnings improved to $5.4 million, or $0.15 per diluted share, compared with , $3.9 million, or $0.10 per diluted share, for the same quarter last year. Revenues clocked in at $155.9 million, compared with $152.6 million in 2006.
"The anticipated earnings recovery starting with the second quarter is on track and we expect significantly favorable earnings comparisons for the second half and full year of 2007,” said Chairman and CEO of Hartmarx Homi B. Patel.
The Chicago-based company said that second quarter revenues reflected a previously reported shift of approximately $13 million of spring advance orders of a major customer from the first quarter last year to the second quarter this year. Hartmarx said a similar shift of fall advance orders from the third quarter last year to the fourth quarter this year in the range of $8 million to $10 million is expected.
Company executives said they are maintaining their full-year guidance of revenues between $585 million and $600 million, with diluted earnings per share in the range of between $0.50 and $0.56.
"We are pleased that we are starting to realize the benefits of our strategy of investing more in product lines and categories serving the better, bridge and luxury price points while reducing our exposure to the mainstream department store channel,” Mr. Patel said.
