Gross margin pressure sent net income down 16% in the first quarter to $25,659,000 from $30,523,000 despite 19% higher revenues that hit $293,628,000 up from $247,554,000. Higher inbound freight caused the bulk of the 590 basis point contraction in gross margin to 52.7%, along with a 220 b.p. impact of a non-recurring true-up of prior year freight costs. Import duties were also a headwind due to the non-renewal of GSP, but price increase and a favorable mix shift helped. SG&A was up 16% but leveraged on the higher sales
Wholesale rose 14% to $137.7 million and Direct-To-Consumer increased 23% to account ... Log in to view full article.