Cutter & Buck Restates Sales FiguresOct 13, 2002 | AP
Sportswear retailer Cutter & Buck restated its financial results for the past four years due to improper accounting, but said the resulting drop in profits amounted to less than 1 percent.
The Seattle-based company announced in August that it was looking into how it had recorded sales, noting that in 2000, the company booked as revenue $5.8 million worth of products that were later returned unsold from distributors.
The company had also been sending products to customers well before they were requested. That let Cutter & Buck record the revenue earlier than it should have, The Seattle Times reported Friday.
The restatements affected sales for fiscal year 2000 the most. The company said its sales were actually $148 million, not $155.2 million. The company also said its profit for that year was $8.2 million, not $10.6 million.
Shifting the 2000 figures helped lift sales and profit for 2001 in the restated results. The company reported revised sales of $182.2 million, instead of $175.8 million, and a profit of $5.5 million, instead of $3.7 million.
The company still faces Securities and Exchange Commission inquiries, a possible delisting by the Nasdaq Stock Market and is the target of several shareholder lawsuits. The company's former chief executive and former chief financial officer, who both resigned earlier this year, are also named in the lawsuits.