Cutter & Buck Slowing Expansion, Shedding Jobs

SEATTLE-Cutter & Buck has announced some belt-tightening measures that include scaling back expansion plans by opening just one full-priced retail store and one discount outlet this fiscal year. Other retrenchments include losing 45 positions, 16 via layoffs.

The company’s profit for the fourth quarter sunk 95% from a year ago, to $292,000, or 3 cents a share, compared with $5.8 million or 55 cents a share, for the last quarter of fiscal year 2000. Sales for the quarter dropped 1.8 percent to $53.6 million.

For the year, profit was $3.7 million, or 35 cents a share, a 65% slide from 2000 when the company reported a profit of $10.6 million, or $1.06 a share. Sales for the year were $171.1 million, a 12.2% increase over 2000. The company’s fiscal year began May 1.

Harvey Jones, Cutter & Buck’s chairman and chief executive officer, said the company has crafted an operating plan for fiscal year 2002 based on executive expectations that the slow economic conditions will continue, and cost-cutting measures will remain necessary.

“We are very pleased with our company-owned retail stores but will take a strategic pause in our expansion plans during fiscal year 2002 to concentrate on asset management. Our management team is committed to our long-term business strategy,” Jones said. “We believe strongly that our recent investments in infrastructure and new businesses will position us for strong growth when the economic uncertainty subsides.”

Cutter & Buck employs about 700 people across the globe. It counts 12 company-owned stores and 7,000 authorized dealers. The positions eliminated were spread throughout the company.