Cutting Back

Cutter & Buck Inc. (Seattle) is closing its 13 retail stores to focus on its core business of designing and marketing high-end sportswear.

“The retail stores are a drag on (the company's) performance,” says ceo Fran Conley. “If we keep them, the drag will continue. Recognizing that our core apparel business provides most of our sales and all of our profits, the board of directors determined that Cutter & Buck should focus its resources on that business.”

The company's core business includes the design and marketing of upscale sportswear to golf, corporate, specialty retail and international customers. It accounted for 91 percent of net sales for the six months ending October 31. For that period, sales for the core business were $69.4 million, while sales in the retail stores totaled $6.6 million.

The company will soon begin sales at its stores to liquidate inventory. Special charges this year for the closures are expected to be between $12 million and $15 million before taxes.