Phoenix Footwear Group Inc. reported earnings results for the third quarter and nine months ended October 3, 2015. For the quarter, gross sales decreased by 4%, wholly attributable to a reduction in sales of Trotters branded product as the company reduced its footprint in a large national account. This realignment in distribution, combined with the company's earlier implementation of a MAP policy resulted in a decrease in net sales of 8.4% for the current quarter compared to the third quarter of 2014. Operating earnings decreased by $651,000 to $96,000, compared to the third quarter of 2014, as the company made select investments to support its occupational expansion and incurred onetime charges related to its realignment in distribution. EBITDA totaled $162,000 compared to $549,000 for the respective quarter of 2014. Net sales decreased by $533,000, or 8.4%, to $5.82 million compared to $6.36 million for the third quarter of fiscal 2014. The decrease in net sales for the quarter was associated with a reduction of the company's presence in a large national retailer, along with an increase in the accrual for allowances and other discounts provided to this customer that was partly offset by an 85.5% increase in net sales of licensed occupational footwear sold primarily in the medical uniform channel. The company reported a net loss from continuing operations of $45,000 or $0.00 per share compared to a net operating income from continuing operations of $548,000 or $0.07 per share during the third quarter of fiscal 2014.

For the nine months, EBITDA totaled $107,000 compared to $1.06 million for the first nine months of 2014. Net sales increased $209,000, or 1.3%, to $16.55 million compared to $16.35 million for the first nine months of fiscal 2014. The increase in net sales for the first nine months of fiscal 2015 was primarily driven by a 107.1% increase in sales of licensed footwear first introduced during fiscal 2014, together with increased sales to the company's internet, and catalog retail customers, that was partly reduced by an increase in allowances and discounts provided to a large national retailer, primarily as a result of the implementation of the company's minimum advertised pricing policy, combined with reduced sales in the independent channel of distribution. The company reported a net loss from continuing operations of $735,000 or $0.07 per share compared to net income from continuing operations of $353,000 or $0.04 per share for the first nine months of fiscal 2014. Earnings before interest, taxes, depreciation and amortization from continuing operations was $107,000 compared to $1.06 million for the first nine months of fiscal 2014.