Right Start’s Profits Down 37% in 1st Quarter
The Right Start Inc., a Westlake Village children’s products company, said its fiscal first-quarter profit fell 37% despite record revenue.
In the three months ended Aug. 25, Right Start’s revenue climbed 65%, to $15.9 million compared with $9.6 million a year earlier. Net income for the latest quarter sank to $184,000 from $290,000 for the same period last year.
Right Start attributed the revenue increase primarily to sales generated by its Children’s Wear Digest, which was not part of the company a year ago.
Revenue in the latest quarter also got a boost from increased mailings of its Right Start catalogue, the company said. However, the expense of those mailings and lower-than-expected response rates contributed to the decline in profit.
Separately, Right Start’s largest shareholder, The Right Start American Recreation Centers in Rancho Cordova, reduced its stake in Right Start to 62.5% from 63.5% to raise cash. Right Start American Recreation said it would use the funds to expand its bowling center.
Right Start American Recreation sold 63,000 shares of Right Start at $6.75 each between July 12 and Sept. 10, according to a filing with the Securities and Exchange Commission.
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