APII sees sales gain
By Staff -- Playthings, 11/14/2008 8:26:00 AM
ORLANDO, Fla.—Action Products (APII) reported its first quarter-over-quarter sales increase in more than two and a half years in its recently concluded fiscal third quarter.
Sales during the three months ended on Sept. 30, 2008, grew 3 percent from the corresponding period of 2007 to $1.73 million. The gain wasn’t enough, though, to pull the specialty toy maker and medical products producer into the red; its loss for the quarter increased to $1.17 million.
Sales for the nine months ended on Sept. 30, 2008, fell 9 percent to $4.07 million, and losses compared to the prior year grew to $3.04 million. The company’s losses through the year's first nine months were caused by decreased sales and increased selling, general and administrative expenses resulting from prior management's decision to increase headcount without a resulting increase in sales, according to the company.
Gross profit margin was down as a result of the rebalancing of inventory levels with the sell-off of slow moving inventory being replaced with best selling products. In addition, product development costs increased due to the re-launch APII’s Curiosity Kits range and its new OLOGY line, the company said.
The company's new managment team accomplished several “significant milestones” towards improving its operations, including: a significant reduction in operating costs by reducing product cost and eliminating non-productive sales positions; reducing facility costs by consolidating warehouse facilities; repositioning sales team to be better positioned to take advantage of brands the company owns; and shrinking inventory cost by reducing non-performing SKUs and reinvesting in top sellers.
As part of “a renewed effort to become a stronger household name,” APII’s recently renamed toy division, Action Toys, will launch a redesigned logo and marketing campaign to the trade and to consumers which begins with the launch of their new website www.actiontoycompany.com next month. In early 2009, distributors and retailers will have access to a specialized B2B portal where orders can be placed and customized sales and product information will be available on demand.
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