EAST RUTHERFORD, NJ - Raphael Benaroya, president and CEO of Kid Brands Inc., which includes LaJobi children's furniture, outlined a plan to bring the company back to profitability.
Kid Brands posted a $1 million loss on in the first quarter compared to an $800,000 loss for the first quarter of 2012. In addition, the company's first quarter net sales declined 6.9% from $55.2 million last year to $51.4 million this year. LaJobi, one of Kid Brands four major divisions, recorded an 11.6% sales decline in the first quarter.
Benaroya said the sales decline was anticipated because of product discontinuations and the close of the company's former United Kingdom operations. "The transformation and improvement of our business is continuing," he said. "We are beginning to see the results of our efforts to improve margins through our focus on reducing product costs and on managing inventory better. Our SG&A expense decrease also reflects our initiatives to right-size the business, as well as our heightened attention to almost every cost item throughout the business."
Benaroya rattled off a list of "key objectives" that the company is working on to improve its financial perofmrance, including:
• Increase sales through product line expansion and product innovation.
• Extend Kid Brands' sales reach to underdeveloped customers and channels of distribution.
• Improve margins through further product and shipping cost reductions.
• Implement operational initiatives "designed to build solid, scalable and cost effective platforms throughout the business."
• Focus on "further developing our skills and talent resources."
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