Russ Berrie & Co. CEO bullish on holiday sales
Russ Berrie & Co. (NYSE: RUS) CEO Andy Gatto said the Oakland, N.J.-based maker and marketer of gift and kids’ products expects to deliver much of its $36 million backlog during the fourth quarter. The chief executive made the comments during a midday conference call.
“We’ll build back up with new orders early in 2008,” Gatto said.
The company remains confident “retail shelves will be clear as we enter 2008,” he said.
Before the opening, Russ Berrie reported third-quarter sales of $100.9 million, up 29% from $78 million a year earlier. The firm’s quarterly profit totaled $14.3 million, or $0.67 per share, compared with $0.3 million, or $0.01 per share, during the same period of 2006.
Strong demand for the company’s Yomiko-brand plush products and the rollout of its Shining Star product line helped fuel sales.
During the three months ended Sept. 30, Russ Berrie’s selling, general and administrative expenses increased to $30.9 million, up 16% from $26.7 million last year. The firm’s cost of sales rose 18% to $56.8 million, from $48.1 million a year earlier.
The company’s gift segment contributed pre-tax income of $6.1 million, compared with a loss of $3.9 million during the prior-year quarter. Russ Berrie’s infant and juvenile segment contributed pre-tax income of $6.4 million, from $5.8 million a year earlier.
“Though we are ever mindful of the challenging consumer and economic issues impacting the retail marketplace, we continue to receive feedback suggesting that the new products in both our gift and infant segments are receiving outstanding response from both retailers and consumers,” Gatto said.
In afternoon trading, RUS shares are up 14.69%, or $2.25, at $17.57. Over the last 52 weeks, shares have ranged from $13.34 to $20.08.
