For the six months ended April 30, 2009, compared to the comparable period in fiscal 2008, net income increased to $415,000 from $362,000 while net sales declined slightly to $12.1 million from $12.2 million.
The increase in net income in the fiscal 2009 periods was due primarily to lower operating expenses and a reduction in interest expense. Operating expenses decreased $354,000 from the 2008 quarter to the 2009 quarter and $100,000 between the six-month periods.
The net sales declines were due to the deepening global recession. However, net sales were benefited by the continued increase in net sales of the Company’s largest line, bebe eyewear, and the introduction of Carmen Marc Valvo Eyewear in the Spring of 2008 and Michael Stars Eyewear in the second quarter.
