Net income was cut by 76% to $920,000 in the second quarter from $3,895,000 due to eroding margins, though sales were up 23% to $162,039,000 from $131,602,000, with balanced growth across categories and channels. Wholesale increased 30% to $131.2 million while retail was up 16% to $26.0 million. Contract manufacturing sales were down 65% to $4.9 million from expiring U.S. military contracts. Gross margin contracted 420 b.p. to 33.2% on higher product, inbound freight and other logistics costs. Wholesale gross margins fell 500 b.p. to 30.9% while retail slipped 80 b.p. ... Log in to view full article.