USA: Record Profits For Cutter & Buck Despite Retail Slump

Cutter & Buck Inc (NASDAQ:CBUK) today reported record results for the first quarter of fiscal 2001, despite hard times for other retailers. Sales for the Seattle-based golf- and leisure-apparel company rose 34 per cent to $39m in the quarter ended July 31. Profits increased 27 per cent to $1.3m. Earnings were up a penny to 13 cents a diluted share. During the same period a year ago, net sales were $29m and net income was $1m. The strong numbers reflect across-the-board growth for Cutter & Buck as it revamps its warehouse and distribution system and reorganises its sales force to aggressively push women's apparel. For fiscal year 2000, the company's sales grew 42 per cent and profits were up 33 per cent. "We believe that our stronger and more diversified distribution base reflects Cutter & Buck's favourable positioning as an emerging premium lifestyle brand of choice in the broader retail marketplace," said Marty Marks, president and chief operating officer."We are consistently working to improve company performance while making critical investments in strategic initiatives to support our anticipated future growth," added Marks. "Over the past two years, we have opened seven retail stores and recently signed leases for two additional stores, in West Palm Beach, Florida and Palm Springs, California. "The new distribution centre is open and we are nearing the completion of our state-of-the-art warehouse management system. Through all this, we have consistently grown sales and improved our bottom-line performance. We believe that Cutter & Buck is well positioned to aggressively compete on a long-term basis in the upscale sportswear market," concluded Harvey Jones, Cutter & Buck's chief executive.