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Donnkenny Net Before Charges More Than Doubles In Quarter

Led by robust sales in its Donnkenny and Mickey & Co. businesses, Donnkenny Inc. reported earnings before special charges more than doubled in the 2nd quarter.

NEW YORK -- Led by robust sales in its Donnkenny and Mickey & Co. businesses, Donnkenny Inc. reported earnings before special charges more than doubled in the second quarter and six months ended June 4.


In the quarter, profits -- excluding charges for early retirement of debt in both periods -- increased to $1.6 million from $771,000 a year ago. After the charges, net earnings in the latest quarter were $1.3 million, or 20 cents a share, against $318,000, or 8 cents, a year-ago.


Sales gained 9.4 percent to $33.2 million from $30.3 million.


In the half, earnings before the charges rose to $3.8 million from $1.6 million. Earnings for the latest half included a one-time gain of $650,000 on the sale of Ship 'N Shore trademarks to Montgomery Ward.


After charges, profits in the half came to $3.5 million, or 54 cents, against $1.1 million, or 30 cents.
Sales rose 6.6 percent to $63.7 million from $59.8 million.


Richard Rubin, president and chief executive officer, said that despite a weak apparel market, business is growing at a steady pace, and he expects the trend to continue for the remainder of the year.


In a telephone interview, Rubin noted that the company's products are "retailing extremely well," citing its Donnkenny branded apparel and Mickey & Co. products as strong sellers.