California-based Signature Eyewear had a 3.3 percent drop in turnover to $5.9 million for the second quarter ended April 30, as net sales continued to be hurt by the recession, but the company was able to report its 18th consecutive profitable quarter.
The volume of sales was fairly stable from one year to the next, but the average sales price of the company's frames dropped as customers bought cheaper products and Signature offered bigger discounts. The company was also affected this year by labor shortages at its facilities in China, which caused production delays. The delays could continue for several quarters, and lead to higher frame prices.
Signature's quarterly net income fell by 27.3 percent to $157,000, due primarily to net sales and a lower gross margin, partially offset by lower operating expenses and interest expense.
For the first six months of the fiscal year, net sales fell by 9.1 percent to $11.0 million, and the net income decreased to $299,000 from $415,000. The company reduced its debt from $4.2 million on Oct. 31 to $3.7 million on April 30, its lowest level in more than 10 years.