Net income gained 14% to $8,059,000 from $7,093,000 in the first quarter while sales inched up 1% to $114,813,000 from $113,252,000 on retail segment increases that more than offset declining direct sales. But the shift in sales mix weighed on gross margin, which contracted 320 basis points to 51.3%. Profits were boosted by $1.5 million from a decline in effective tax rate to 23.7% from 33.6% from the Tax Act, and by a $1.0 million charge on discontinued operations last year which did not recur. Inventories ended the period up 10% at $37.7 million. NLS maintained its full year guidance ... Log in to view full article.