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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 15, 1999
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(October 13, 1999)
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R. G. BARRY CORPORATION
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(Exact name of registrant as specified in its charter)
Ohio 1-8769 31-4362899
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(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
13405 Yarmouth Road N.W., Pickerington, Ohio 43147
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(Address of principal executive offices) (Zip Code)
(614) 864-6400
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(Registrant's telephone number, including area code)
Not Applicable
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(Former name or former address, if changed since last report.)
Index to Exhibits at Page 4
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Item 5. Other Events.
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On October 13, 1999, R. G. Barry Corporation issued a press release in
order to update its earnings outlook for the third fiscal quarter and the 1999
fiscal year as a whole. A copy of that press release is included as Exhibit 99
and incorporated herein by this reference.
Item 7. Financial Statements and Exhibits.
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(a) and (b) Not applicable.
(c) Exhibits:
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Exhibit No. Description
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99 Press Release issued on October 13, 1999
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
R. G. BARRY CORPORATION
By: /s/ Richard L. Burrell
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Richard L. Burrell
Dated: October 15, 1999 Senior Vice President-Finance,
Secretary and Treasurer
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INDEX TO EXHIBITS
Current Report on Form 8-K
Dated October 15, 1999
R. G. Barry Corporation
Exhibit No. Description Location
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99 Press Release issued on October 13, *
1999
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*Filed herewith.
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Exhibit 99
AT THE COMPANY
Richard Burrell Roy Youst
SVP-Finance Dir. Corp. Comm.
(614) 864-6400 (614) 860-8116
FOR IMMEDIATE RELEASE
WEDNESDAY, OCTOBER 13, 1999
R. G. BARRY CORPORATION UPDATES EARNINGS OUTLOOK
1999 Expectations Lowered
PICKERINGTON, OHIO - OCTOBER 13, 1999 -- R. G. BARRY CORPORATION (NYSE: RGB)
today said it expects sales and earnings for the third quarter and the year as a
whole to fall below previous estimates.
"We currently expect our third quarter earnings to be approximately $0.15 per
share versus $0.61 in the third quarter last year, and we project full-year 1999
at approximately break-even," Chairman of the Board and Chief Executive Officer
Gordon Zacks said.
"While operating our factories at less than full capacity was a successful
inventory reduction strategy, it had a greater than planned negative impact on
plant efficiencies and manufacturing costs. It also created a production
shortfall in the third quarter that forced us to push approximately $5 million
of September orders into October. Although we expect these orders will be filled
in the fourth quarter, late deliveries increase the possibility of
cancellations.
"Hurricane Floyd and subsequent flooding in eastern North Carolina closed our
Goldsboro distribution center for five days in September and prevented us from
filling approximately $3.5 million in third quarter orders. Although these
orders were shipped in October, there is a risk of lost reorders due to missed
retail selling days.
"Our French business is growing. Our total 1999 European sales should be more
than last year, but less than we planned. We continue to believe that Europe
represents a significant growth opportunity for us. We are supporting that
belief by investing in television advertising as a means of building the
Barry(R) Comfort brand name in France. We also are in the process of opening a
new factory in the Dominican Republic from which our products can enter Europe
duty-free. And during the third
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quarter, we completed the purchase of a controlling interest in the French
slipper maker Fargeot.
"Most of our profit is traditionally generated in the fourth quarter. It is
closely tied to holiday-related delivery and sell-through issues that always
carry some inherent risk. Unfortunately, the level of risk this year is higher
than normal due to the possibility of greater than expected order cancellations.
And, while we are quite excited by the highly positive initial trade reaction to
our new line of spa-at-home products, it is too early for us to assess consumer
reaction to this new product line. In both of these instances, it will be the
end of the year before we can fully determine their impact on our 1999 results.
"The legal defense of our thermal product patents and intellectual property
rights and the continuing development work on our hot food delivery system have
had a negative impact on 1999 earnings. However, testing of the Powertech(R)
with Microcore(R) hot food delivery system by two large national pizza chains
has moved to a significantly higher level. We are encouraged by their growing
interest and continue to believe in the future potential of this business.
R. G. Barry Corporation is the world's largest manufacturer and marketer of
at-and-around-the-home comfort footwear. The Company also makes and sells a
variety of thermal retention technology commercial and consumer products. Visit
R. G. Barry Corporation's Web sites at [http://www.rgbarry.com] and
[http://www.microcoretechnology.com] to learn more about its businesses.
R. G. Barry senior management will conduct a conference call at 10:30 a.m.
Eastern Daylight time Thursday, October 14, 1999, to discuss the Company's
performance and to accept questions from participants. The conference will be
available to all interested parties via the Internet. To listen to the call via
the Web go to [http://www.vcall.com]. Please go to the Web site at least fifteen
minutes early to register, download, and install any necessary audio software. A
replay of the call also will be available through October 20, 1999, by phoning
(800) 696-1588. The replay access code is 608616. The Company is scheduled to
release its third quarter results on October 26, 1999.
FOR ADDITIONAL INFORMATION ON R. G. BARRY, VIA FAX AT NO CHARGE,
DIAL 1-800-PRO-INFO AND ENTER TICKER SYMBOL RGB.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995: The statements in this release which are not historical fact are
forward-looking statements based upon the Company's current plans and
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strategies; and reflect the Company's current assessment of the risks and
uncertainties related to its business, including such things as product demand
and market acceptance; the economic and business environment and the impact of
governmental regulations both in the United States and abroad; the effects of
direct sourcing by customers of competitive products and pricing pressures from
retailers; inherent risks of international development, including currency
exchange rates, the implementation of the Euro, economic conditions, regulatory
and cultural difficulties or delays in the Company's development outside the
United States; the Company's ability to improve its processes and business
practices to keep pace with the economic, competitive and technological
environment, including successfully addressing year 2000 issues; capacity;
efficiency and supply constraints; weather conditions; and other risks detailed
in the Company's press releases, shareholder communications and Securities and
Exchange Commission filings. Actual events affecting the Company and the impact
of such events on the Company's operations may vary from those currently
anticipated.
