MAY 17 I FENDER I FINANCE
Fender's Sales Up,
Net Income Down
Fender recently reported its first quarter net sales rose 2.2 percent to $174 million, while its net income declined 73 percent to $1.9 million. Fender filed for an IPO this past March.
According to The Wall Street Journal, the primary drag on Fender's bottom line came from higher labor costs, as well as increased advertising and promotional expenses. Higher labor costs were a result of an increase in employees and salaries.
Additionally, stock options issued in the second and third quarters of 2011 resulted in an increase in stock-based compensation expenses. Higher advertising and promotional expenses were related to costs associated with Musikmesse, held in Frankfurt, Germany, during the first quarter this year. (In 2011, the music instrument trade show was held in the second quarter.)