Vancouver’s Sterling Shoes Income Fund (TSX:SSI.UN) reported a 60% decline in its quarterly loss despite only a slight drop in first quarter revenue.
Net loss fell to $961,000 from $2.4 million while revenue fell 3% to $26.8 million from $27.7 million.
The fund, which plans to convert back into a corporation by July 1, 2010, reported its costs from sales fell 6.9%, partly because of a stronger Canadian dollar that was worth approximately 20% more in the first quarter than in the same period in 2009.
Cost of sales also fell because of programs initiated to reduce inventory to make room for higher margin products.
Despite a challenging environment, the company also was able to reduce its debt levels with net debt falling to $4.7 million from $7.9 million a year earlier.
In addition to its income trust conversion, the company will also be losing CEO Jeremy Horwitz by June 22. Horwitz, who has been with the company since 1988, has said he is leaving for personal reasons. The company continues to look for a new president and CEO.
Sterling Shoes’ unit price range during the past week: between $2.39 and $2.50; 52-week high: $3.49; 52-week low: $1.34.