For the quarter ended on the 28th of June, net sales increased 24.1% to 4.3 million US dollars compared to 3.4 million US dollars for the second quarter of fiscal 2013. Net sales for the first six months of fiscal 2014 had consistent growth, going up by 8.1% to 10.0 million US dollars compared to 9.2 million US dollars for the first six months of 2013.

Phoenix Footwear is reporting a net loss of 375 000 US dollars (0.05 US dollars per share) for the second quarter, compared to net loss of 368 000 million US dollars (0.05 US dollars per share) for the same period of the prior year. For the entire first semester consolidated net losses reached 204 000 US dollars (0.03 US dollar per share) compared to a net loss of 109 000 US dollars or (0.02 per share) for the first semester in 2013.

Gross margins for the second quarter of fiscal 2014 declined to 33.0% compared to 37.1% for the second quarter of fiscal 2013. Gross margin for the first six months of fiscal 2014 decreased to 35.2% compared to 37.0% for the first six months of fiscal 2013. Lower gross margins for the second quarter and first six months of fiscal 2014 were a resulted of an increase in sales of off-priced goods, and sales of lower margin licensed footwear.

While the group generated significant increases in revenue during the quarter, sales from sandals did not materialize as the company had expected. As a result, management confirms they have moved aggressively during the quarter to liquidate certain seasonal inventory which adversely impacted gross margins compared to the prior quarters.

According to the company, the increase in net sales for the second quarter and first semester of fiscal 2014 was primarily driven by sales of licensed footwear introduced during spring 2014, together with increased sales to the company's internet and national retail customers.

Company’s stock was last traded over-the-counter at 0.55 US dollars on the 7th of August.

Phoenix Footwear Group, Inc., is a company based in California and specialized in quality comfort women’s footwear. Phoenix Footwear designs, develops, markets and sells footwear in a wide range of sizes and widths under the brands Trotters® and SoftWalk®. These brands are primarily sold through department stores, leading specialty and independent retail stores, mail order catalogues and internet retailers and are carried by approximately 650 customers in over 900 retail locations throughout the US. Phoenix Footwear has been engaged in the manufacture or importation and sale of footwear since 1882.

For more information about Phoenix Footwear Group Inc. please visit the company’s website.