Ennis Reports 24 Percent Print Sales Increase for Quarter Ended August 31
Ennis Inc., the business forms and apparel company located in Midlothian, Texas, has reported financial results for the three and six months ended August 31, 2012. Overall sales for the second quarter were up 6.1 percent, at $138.3 million, and up 2.7 percent for the six-month period, at $273.6 million.
Sales figures for the company are divided into print and apparel segments. Print sales for the quarter were up 24.3 percent, from $69.2 million to $86 million. For the half-year period, the increase in sales climbs to 27.2 percent, going from $136.3 million in 2011 to $173.4 this year.
"Our print operations continue to deliver revenue and operational results as expected," said Keith Walters, chairman, chief executive officer and president of Ennis. "Our two recent acquisitions, Printegra and PrintXcel, delivered sales and profits for the second quarter better than expected."
Where the company's print sales have seen significant increases for the year, its apparel sales, headed by supplier Alstyle Apparel, have slumped. Apparel sales for the second quarter of 2012 were 52.3 million, compared to $61.2 million for the same period last year, a 14.5 percent decrease. For the six-month period those trends are amplified, with a 21.7 percent decrease in sales, $107.5 million compared to $137.3 million. The company's apparel sales and revenue, like many other apparel companies, continue to be negatively impacted by record cotton costs in 2011.
"While our apparel results continue to be negatively impacted by higher raw material costs increasing the cost of finished goods and cost of sales, we are beginning to see improvement in this segment's margin," Walters said. "Apparel's margin during the second quarter improved 740 basis points over the preceding quarter; and we expect its margin to continue to improve during the current quarter as higher cost raw materials are being replaced with raw materials with significantly lower costs."
Net earnings for both the quarter and half were down slightly due to the apparel sector. For the three month period, earnings decreased from $9.7 million to $7.6 million, and for the six month period decreased from $21.1 million to $11.5 million.
"While challenges continue in the apparel sector, we are confident about the long-term prospects of both sectors. As always, no matter what direction this fiscal year takes, you can be assured we will remain vigilant to the task at hand," Walters said.
For more information, visit www.ennis.com.