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RG Barry Brands Reports Record 3rd Quarter Earnings

             RG Barry Brands Reports Record 3rd Quarter Earnings

PR Newswire

PICKERINGTON, Ohio, May 7, 2013

PICKERINGTON, Ohio, May 7, 2013 /PRNewswire/ --Accessories marketer R.G.
Barry Corporation (Nasdaq: DFZ) today reported strong operating results for
its fiscal 2013 third quarter, ended March 30.

On a consolidated quarterly basis, the Company reported:

  oNet sales of $25.8 million, up 2.7% from $25.1 million for the third
    quarter of fiscal 2012;
  oA net earnings increase of 84.8% to $1.5 million, or $0.13 per diluted
    share, versus net earnings of $0.8 million, or $0.07 per diluted share, in
    the comparable period last year;
  oGross profit as a percent of net sales expanded by 130 basis points to
    45.9% from 44.6% one year ago; and
  oSelling, general and administrative expenses were down 2.9% from the
    equivalent period last year at $9.6 million. 

For the nine months, the Company's consolidated results included:

  oA 7.2% decline in net sales to $121.5 million versus $130.9 million one
    year ago;
  oNet earnings of $13.0 million, or $1.13 per diluted share, down from $14.1
    million, or $1.24 per diluted share, in the corresponding period of fiscal
    2012;
  oImproved gross profit as a percent of net sales at 43.9% compared to 43.1%
    in the equivalent nine-months last year; and
  oSelling, general and administrative expenses down 2.0% from the comparable
    nine-month period last year at $32.5 million.

The Company said that net sales in its Footwear segment declined for both the
quarter and nine months. Quarterly net sales of $16.4 million were down 4.1%,
reflecting fewer shipments to mass and off-price customers. Nine-month net
sales declined 12.1% to $94.2 million, reflecting, in part, the impact of the
company's decision last year to eliminate some under-performing elements of
its footwear business; loss of a seasonal men's slipper business in a national
department store chain; and reduction in the size of some seasonal club
programs versus 2012. Gross profit as a percentage of net sales in the
footwear segment was 40.0% for the quarter and 40.4% for the nine months,
reflecting improvement over the comparable periods by 60 and 40 bps,
respectively. The segment generated operating profit of $2.5 million for the
quarter, up 5.2% from $2.4 million one year ago; and $23.1 million for the
nine months, down 14.2% from $27.0 million in the equivalent period of fiscal
2012.

In the Company's Accessories segment, quarterly net sales were $9.4 million,
up 17.3% from one year ago; and nine-month net sales of $27.4 million were up
15.2% versus the comparable period last year. Segment gross profit as a
percentage of net sales for the quarter expanded by 60 bps to 56.3% versus one
year ago; and nine-month gross profit as a percentage of net sales was 55.7%,
down 150 bps from the comparable period of fiscal 2012. The Accessories
segment generated operating profit of $2.1 million for the quarter, up 44.4%;
and $5.4 million for the nine months, an increase of 13.3% over the previous
year.

The Company's balance sheet reflected:

  oCash and short-term investments increased by 11.4% to $44.8 million from
    $40.2 million one year ago;
  oConsolidated inventory at $17.3 million was relatively flat versus the
    equivalent period last year; and
  oNet shareholders' equity of $85.5 million was up from $75.8 million
    reported at the end of the third quarter in fiscal 2012.

Management Comments
"The strong performance of our Accessories segment and its contribution to our
operating results combined with benefits realized by eliminating
under-performing components of our Footwear business add to the viability of
our evolving business model and position us for significant growth in the next
three-to-five years," said Greg Tunney, President and Chief Executive Officer.
"We will continue to focus on meeting challenges in the marketplace through
excellent performance, superior products and our growing portfolio of great
accessories brands."

"Both of our business coalitions performed at or above planned levels and our
quarterly earnings nearly doubled over last year's, making this the best
March-ending quarter in our Company's 66-year history from a profit
perspective," added Jose Ibarra, Senior Vice President Finance and Chief
Financial Officer. "We have clean and current inventories, a healthy cash
position and the strategies necessary to continue expanding our footprint
through organic and acquisition growth."

Mr. Tunney continued, "While we will not match the record level of last year's
performance, this will be a very good year for our business. We will end
Fiscal 2013 on June 29 as one of our industry's top performers.

"We are focused on the strategies that will drive long-term, profitable
growth. We are investing in our platforms and our people. We are expanding
into new and underserved markets. And, we are seeking out and acquiring
successful accessories brands that can help propel us to the next level. We
are quite confident that we can achieve our growth and profitability targets
for the businesses," he concluded.

Conference Call/Webcast Today
R.G. Barry Corporation senior management will conduct a conference call for
all interested parties at 9:00 a.m. Eastern Standard Time today. Management
will discuss the Company's performance, its plans for the future and will
accept questions from participants. The conference call is available at (800)
860-2442 in the U.S., (866) 605-3852 in Canada and +1 (412) 858-4600
internationally until five minutes before starting time. To listen via the
Internet, log on at: http://www.videonewswire.com/event.asp?id=93725.

Replays of the call will be available several hours after its completion. The
audio replay can be accessed through 9 a.m. Eastern Daylight Time, Tuesday,
May 21, 2013 at 877.344.7529 (U.S.) and +1.412.317.0088
(Canada/international); ask for conference 10028237. A written transcript and
audio replay of the call will be posted for at least 12 months at the Investor
Room section of rgbarry.com.

About RG Barry
RG Barry develops great accessories brands that provide fashionable,
solution-oriented products that touch consumers. Our primary brands include:
Dearfoams slippers dearfoams.com; baggallini handbags, totes and travel
accessories baggallini.com; and Foot Petals premium insoles and comfort
products footpetals.com. To learn more, visit us at rgbarry.com.

Forward-Looking Statements
Some of the disclosures in this news release contain forward-looking
statements that involve substantial risks and uncertainties. You can identify
these statements by forward-looking words such as "may," "expect," "could,"
"should," "anticipate," "believe," "estimate," or words with similar
meanings. Any statements that refer to projections of our future performance,
anticipated trends in our business and other characterizations of future
events or circumstances are forward-looking statements. These statements,
which are forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995, are based upon our current plans and
strategies and reflect our current assessment of the risks and uncertainties
related to our business. These risks include, but are not limited to: our
continuing ability to source products from third parties located within and
outside North America; competitive cost pressures; the loss of retailer
customers to competitors, consolidations, bankruptcies or liquidations; shifts
in consumer preferences; the impact of the global financial crisis and general
economic conditions on consumer spending; the impact of the highly seasonal
nature of our footwear business upon our operations; inaccurate forecasting of
consumer demand; difficulties liquidating excess inventory; disruption of our
supply chain or distribution networks; our ability to secure and protect
trademarks and other intellectual property; our ability to implement new
enterprise resource information systems; a failure in or a breach of our
operational or security systems or infrastructure, or those of our third-party
suppliers and other service providers, including as a result of cyber-attacks;
the unexpected loss of any of the skills and experience provided by our senior
officers; our ability to successfully integrate any new business acquisitions;
and our investment of excess cash in certificates of deposit and other
variable rate demand note securities. You should read this news release
carefully because the forward-looking statements contained in it may (1)
discuss our future expectations; (2) contain projections of our future results
of operations or of our future financial condition; or (3) state other
"forward-looking" information. The risk factors described in this news
release and in our filings with the Securities and Exchange Commission (the
"SEC"), in particular "Item 1A. Risk Factors" of Part I of our Annual Report
on Form 10-K for the fiscal year ended June 30, 2012 (the "2012 Form 10-K"),
give examples of the types of uncertainties that may cause actual performance
to differ materially from the expectations we describe in our forward-looking
statements. If the events described in "Item 1A. Risk Factors" of Part I of
our 2012 Form 10-K occur, they could have a material adverse effect on our
business, operating results and financial condition. You should also know
that it is impossible to predict or identify all risks and uncertainties
related to our business. Consequently, no one should consider any such list to
be a complete set of all potential risks and uncertainties. Forward-looking
statements speak only as of the date on which they are made, and we undertake
no obligation to update any forward-looking statement to reflect circumstances
or events that occur after the date on which the statement is made to reflect
unanticipated events, except as required by applicable law. Any further
disclosures in our filings with the SEC should also be considered.



R.G. BARRY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands of dollars, except for per share data)
               Thirteen       Thirteen                 Thirty-nine    Thirty-nine
               Weeks Ended    Weeks Ended              Weeks Ended    Weeks Ended
               (unaudited)  (unaudited)  %         (unaudited)  (unaudited)  %
                                             Increase                                Increase
               March 30,      March 31,      Decrease  March 30,      March 31,      Decrease
               2013           2012                     2013           2012
Net sales      $        $        2.7%      $        $        -7.2%
                  25,803     25,114              121,540     130,943
Cost of sales  13,951         13,921         0.2%      68,217         74,501         -8.4%
 Gross       11,852         11,193         5.9%      53,323         56,442         -5.5%
profit
 Gross
profit (as     45.9%          44.6%                    43.9%          43.1%
percent of net
sales)
Selling,
general and    9,573          9,855          -2.9%     32,493         33,150         -2.0%
administrative
expenses
 Operating  2,279          1,338          70.3%     20,830         23,292         -10.6%
profit
Other income   357            221                      821            396
Interest       (131)          (161)          -18.6%    (483)          (604)          -20.0%
expense, net
 Earnings,
before income  2,505          1,398          79.2%     21,168         23,084         -8.3%
taxes
Income tax     964            564            70.9%     8,193          9,009          -9.1%
expense
               $        $                  $        $      
Net earnings                       84.8%        12,975     14,075  -7.8%
               1,541         834
Earnings per
common share
               $        $                  $        $      
 Basic                     100.0%                      -9.5%
               0.14           0.07                     1.14           1.26
               $        $                  $        $      
 Diluted                   85.7%                       -8.9%
               0.13           0.07                     1.13           1.24
Weighted
average number
of common
shares
outstanding
 Basic   11,377         11,245                   11,344         11,187
 Diluted 11,532         11,444                   11,510         11,388
CONSOLIDATED BALANCE SHEETS
(in thousands of dollars)
               (unaudited)  (unaudited)
               March 30,      March 31,                June 30, 2012
               2013           2012
ASSETS
Cash &        $        $                  $      
short-term        44,753     40,178               41,711
investments
Accounts
receivable,    15,686         14,903                   13,176
net
Inventory      17,291         16,998                   21,149
Prepaid
expenses and   2,859          2,885                    2,864
other current
assets
 Total       80,589         74,964                   78,900
current assets
Net property,
plant and      4,091          4,364                    4,186
equipment
Other assets   44,055         45,549                   45,180
 Total       $        $                  $      
assets           128,735     124,877               128,266
LIABILITIES &
SHAREHOLDERS'
EQUITY
Short-term     4,286          6,035                    6,036
notes payable
Accounts       3,950          2,924                    10,962
payable
Other current  7,099          7,947                    5,701
liabilities
 Total
current        15,335         16,906                   22,699
liabilities
Long-term debt 17,143         21,430                   20,357
Accrued
retirement     10,807         10,696                   10,803
costs and
other
Shareholders'  85,450         75,845                   74,407
equity, net
 Total
liabilities &  $        $                  $      
shareholders'    128,735     124,877               128,266
equity





SOURCE R.G. Barry Corporation

Website: http://www.rgbarry.com
Contact: Roy Youst, RG Barry Investor Relations 614.729.7200, Jose G. Ibarra,
Senior VP Finance/CFO 614.864.6400
 
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