Next announces sales increases

US sportswear and promotional products leader Next Inc has announced an increase in net sales of 39.4 percent to $8.4 million (£4.8 million) for the third quarter ended 31 August 2005. Gross profit - after cost of sales - climbed 21 percent to $2.2 million from $1.8 million in the same quarter last year. Operating income rose 48.9 percent to $350,510, but net income was down 5.7 percent to $103,444 compared with $109,673 during the same period last year, due to higher interest cost.

Net sales for the nine months ended 31 August rose 29.6 percent to $17.9 million, while gross profit climbed 15 percent to $4.9 million.

" The third quarter saw a substantial increase in sales, however their gross profit margins were lower than last year," said CFO Charles L. Thompson in a statement. "The apparel embargo with China prevented them from taking advantage of their best sourcing options, which resulted in lost opportunity cost. Also, they received the largest order in Company history, for a major customer which comprised 45 percent of total sales for the quarter."