City sportswear-maker Isaacs reports loss of $3.1 million Earnings

August 07, 1998|By J. Leffall | J. Leffall,SUN STAFF

I. C. Isaacs & Co. Inc., a sportswear designer and manufacturer based in Baltimore, reported yesterday a second-quarter loss of $3.1 million, or 37 cents per share.

During the comparable period last year, Isaacs posted net income of $3.4 million, or 85 cents per share.

Net sales were $26.8 million for the second quarter of 1998, which ended June 30, down 30 percent from $38.4 million a year ago.

The company, which offers sportswear for men and women under the BOSS, Beverly Hills Polo Club and Girbaud brand names, attributed the drop in business to growing competition in the young men's jeans market and a late release of the BOSS and Beverly Hills Polo Club fall lines.

"While this situation may continue to impact our results during the third quarter, our men's merchandising staff has been effective. As a result, our spring 1999 lines are on schedule for August," said Robert J. Arnot, chairman and co-chief executive of Isaacs.

Analysts said other companies took advantage if Isaacs' late start.

In the first six months of the year, Isaacs posted a loss of $2.4 million on sales of $61.1 million, compared with a profit of $7.8 million on sales of $77.7 million for the first six months of 1997.

Since authorizing the repurchase of nearly $3 million of its common stock on June 15, the company has bought more than 423,000 of its shares.

Gerald W. Lear, president and co-chief executive officer, said the company will continue to buy back shares.

"We continue to believe that at current levels our stock price does not accurately reflect our growth opportunities and is significantly undervalued," Lear said in a statement. "Therefore, we will continue to repurchase stock from time to time in the

open market or privately negotiated transactions."

Isaacs shares, after hitting a 52-week low of $1.75 before closing at $2 Wednesday, fell 12.5 cents yesterday to close at $1.875.

Pub Date: 8/07/98

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