Despite a 19% decline in sales, L.A. Gear said Tuesday that it pulled out of the red and posted a small profit of $258,000 in its second quarter.
The Marina del Rey-based sneaker marketer also said it has come to terms with its banks on a new $200-million credit line, moving it closer to completing a previously announced deal to sell 30% of the company for $100 million.
L.A. Gear's second-quarter profit, after two consecutive money-losing quarters, came on sales of $182.8 million. A year earlier, it turned a profit of $10.2 million on sales of $225.4 million.
The company said its profit margins continue to be squeezed by the discounting it has relied on to reduce its inventory of slow-selling sneakers.