CSS Industries, Inc. (CSS) has reported 37.73 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $6.99 million, or $0.77 a share in the quarter, compared with $11.23 million, or $1.22 a share for the same period last year.
Revenue during the quarter dropped 9.14 percent to $101.29 million from $111.48 million in the previous year period. Gross margin for the quarter contracted 270 basis points over the previous year period to 31.20 percent. Total expenses were 89.46 percent of quarterly revenues, up from 84.13 percent for the same period last year. That has resulted in a contraction of 533 basis points in operating margin to 10.54 percent.
Christopher J. Munyan, chief executive officer and president commented, "While we are disappointed in our results in the first half of our fiscal year, we expect the sales shortfall will be more than offset in the latter half of this fiscal year. We further believe that most of the unusual costs associated with our two warehouse consolidation projects have been incurred as of September 30, 2016; however, the higher costs incurred year-to-date will have a permanent impact on earnings for the full year. Despite the challenges we faced with these consolidation projects, we believe that the efficiencies we expect to realize from such projects will benefit our long-term mass retail distribution capabilities. We also continued executing on our strategy of growing our presence in the craft, seasonal and celebrations markets with the Schiff acquisition during our second quarter."
Debt moves up
CSS Industries, Inc. has witnessed an increase in total debt over the last one year. It stood at $4.59 million as on Sep. 30, 2016, up 6.87 percent or $0.29 million from $4.30 million on Sep. 30, 2015. Css Industries has witnessed an increase in long-term debt over the last one year. It stood at $4.59 million as on Sep. 30, 2016, up 6.87 percent or $0.29 million from $4.30 million on Sep. 30, 2015. Total debt was 1.41 percent of total assets as on Sep. 30, 2016, compared with 1.34 percent on Sep. 30, 2015. Debt to equity ratio was almost stable at 0.02 as on Sep. 30, 2016, when compared with the last year.
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