Net income was almost halved to $4,309,000 from $8,241,000 in the third quarter on 3% higher revenues of $91,057,000 compared to $88,132,000 as gross margin plunged 460 basis points to 42.3%. Lower high-margin direct segment sales and product cost increases in both retail and direct segments caused the gross margin contraction. SG&A was 380 basis points higher at 35.5%, but much of that was due to last year’s quarter having about $3.1 million in one-time benefits from finance fee adjustments and a legal settlement. NLS did have a small exposure to the Sears bankruptcy, but said it was not a ... Log in to view full article.