May 06


Gross margin was 44.7% in the fourth quarter compared to 48.9% for the same period last year. The 420 basis point decline was driven by a 160 basis point impact from changes in foreign currency exchange rates, namely the strengthening of the U.S. dollar versus the British Pound, Euro and Yen compared to the same period last year. The remaining 260 basis point change is attributable to a higher proportion of closeout sales including inventory associated with the Tsubo brand for which the Company is currently seeking strategic alternatives, as well as higher air freight charges in order to avoid the West Coast port delays and deliver scheduled fourth quarter shipments on-time.

During the fourth quarter of fiscal 2015 the company repurchased approximately 1.3 million shares of its common stock at an average purchase price of $73.45, for a total of $93.9 million. As of March 31, 2015, the company had used all of the authorized repurchase funds under its $200.0 million stock repurchase program announced in July 2012 and had $172.1 million authorized repurchase funds remaining under its $200.0 million stock repurchase program announced in January 2015.

At March 31, 2015, cash and cash equivalents were $225.1 million compared to $245.0 million at March 31, 2014. The Company had $5.4 million in outstanding borrowings under its credit facility at March 31, 2015 compared to$6.7 million at March 31, 2014. The decreases in cash and cash equivalents and outstanding borrowings are primarily attributable to cash used for share repurchases and for purchases of capital expenditures and intangibles, partially offset by cash provided by operations and proceeds from the loan on the corporate headquarters.