Phoenix Footwear Group of California turned in a 5 percent drop in sales to $3.8 million in the second quarter, yet still managed to turn around from a net loss last year of $5.1 million to a positive $201,000. The loss form continuing operations was $1.1 million, an improvement over last year's loss of $2.1 million. The gross profit margin rose by 7.0 percentage points to 20 percent. Among its brands, Trotters had a 10 percent increase in sales, but SoftWalk fell by 17 percent and Trask plummeted by 47 percent. The company noted that the second quarter was usually the weakest, and this year in particular it was hurt by inventory minimization by its retailers. In the third quarter it expects both SoftWalk and Trotters both to show sales growth. SoftWalk should get a boost from Phoenix's entry into the toning category, a product called HealthGlide that it will introduce in December.