Russ Berrie and Company has reported its fourth consecutive quarter of profitable operations.
Russ has attributed its Q2 success to the popularity of the Shining Stars and Yomiko branded products.
The firm posted consolidated net sales of $70.7 million, an increase of 7.7 per cent on Q2 for 2006. Its gift segment alone rose by 16.1 per cent to $33.8 million, primarily due to the roll out of the Shining Stars product range (which is being handled in the UK by Character Options).
The firm’s infant and juvenile segment rose slightly to $36.9 million, as did its consolidated gross profits to $28.1 million compared to $26.5 million for 2006.
Overall, the company measured an improvement in its consolidated net income of $6.3 million for Q2 and $13.9 million for the first half of 2007, which was attributed to an increased focus on product development, an expanded distribution network plus the elimination of operational costs.
Andy Gatto, president and chief executive officer at Russ Berrie, said he was “pleased” with the results.
“We believe we are well positioned to build on our momentum in the second half of the year. We are continuing to benefit from the successful diversification of our portfolio, which is enabling us to generate balanced revenue across our two segments,” Gatto said.
“Our strong backlog, which in our gift segment is up over 220 per cent from this time last year, reflects the positive response we are seeing for our new and innovative gift product lines. We remain focused on operating and building a growth-driven, cost-efficient business, which we believe will allow us to maximise our success over the long-term,” he said.