Consolidated gross profit margin decreased to 38.5% for the three months ended June 30, 2012, from 46.9% for the three months ended June 30, 2011. The decrease in gross profit percentage from the same quarter in the prior year was primarily the result of changes in product and customer mix from the prior year, with a larger percentage of global sales coming from lower priced shoes sold at smaller product margins, certain European retail customers that are provided larger discounts and sales of certain of our slow moving and older inventory styles at discounted prices in Japan and Germany in order to reduce excess inventories.Selling, general and administrative expenses, excluding restructuring charges (discussed below), decreased $1.3 million, primarily as a result of decreased marketing in our German and French markets and decreased shipping and handling costs and commissions, as a result of decreased sales.
Heelys, Inc. Reports Second Quarter 2012 Financial Results
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