Home / Knowledge / News / Apparel/Garments / Apparel sales up at Ennis Inc
Apparel sales up at Ennis Inc
21
Jun '11
Ennis Inc reported financial results for the first quarter ended May 31, 2011.

Highlights

• Consolidated revenues for the quarter increased $2.6 million, or 1.8% over the comparable quarter last year.
• Apparel sales increased $3.1 million, or 4.2% over the comparable quarter lst year.
• Diluted earnings per share decreased from $.50 per share for the same quarter last year to $.44 for the current quarter.

Financial Overview

For the quarter, consolidated net sales increased by $2.6 million, or 1.8%, from $140.7 million for the quarter ended May 31, 2010 to $143.3 million for the quarter ended May 31, 2011. Print sales for the quarter were $67.1 million, compared to $67.8 million for the same quarter last year, or a decrease of 1.0%. Apparel sales for the quarter were $76.1 million, compared to $73.0 million for the same quarter last year, or an increase of 4.2%.

Overall gross profit margins ("margins") decreased from 30.0% to 27.7% for the quarters ended May 31, 2010 and May 31, 2011, respectively. Print margins decreased from 30.3% to 28.8%, and Apparel margins decreased from 29.7% to 26.8%, for the quarters ended May 31, 2010 and May 31, 2011, respectively.

Net earnings for the quarter decreased from $13.0 million, or 9.3% of sales, for the quarter ended May 31, 2010 to $11.4 million, or 8.0% of sales, for the quarter ended May 31, 2011. Diluted EPS decreased from $0.50 per share to $0.44 per share for the quarters ended May 31, 2010 and May 31, 2011, respectively.

The Company, during the quarter, generated $21.9 million in EBITDA (earnings before interest, taxes, depreciation, and amortization) compared to $23.7 million for the comparable quarter last year.

Keith Walters, Chairman, Chief Executive Officer and President, commented by saying, "Overall we are pleased with the operational results this quarter, even though our reported margins for both sectors decreased over their comparables due to higher raw material costs. In our Apparel sector alone, our raw material costs flowing through our operating results increased approximately 35% over the comparable quarter last year. In addition, our Apparel sector had manufacturing inefficiencies associated with the start-up and transition to our new manufacturing facility in Agua Prieta, Mexico of approximately $2.2 million, or 289 basis points, which were not incurred during the same quarter last year.

“Our major concern for the current fiscal year still remains the high cost of cotton. Even with the significant increase in our cotton cost flowing through our operating results this quarter, the current cost of cotton going into our inventory is still much higher. Our ability to pass these cost increases on to the market continues to be unknown and is dependent upon the continuing economic recovery and the actions of our competitors. Sales for the Print sector appear to have stabilized, but stillremain challenged. Apparel sales during the quarter were restricted some, to help facilitate the transition to our new manufacturing facility.

“The new apparel manufacturing facility continues to progress and we are in the final stages of transitioning production from our Anaheim, CA facility to the new facility. We continue to expect this transition to be completed by the end of our second fiscal quarter. So while many challenges were negotiated during the quarter, many challenges remain for fiscal year 2012. As always, we will continue to remain vigilant to the task at hand."

Ennis Inc

Must ReadView All

Textiles minister Smriti Irani at a press conference with minister of state for textiles, Ajay Tamta, the principal director general (M&C), PIB, AP Frank Noronha and other dignitaries. Courtesy: PIB

Apparel/Garments | On 23rd May 2017

Special package for knitwear coming soon: Irani

Union textiles minister Smriti Irani said that the government of...

Apparel/Garments | On 23rd May 2017

Apparel, footwear use may rise by 63% in 2030: Report

The apparel and footwear consumption is projected to rise by 63 per...

Apparel/Garments | On 23rd May 2017

Gap Inc earns $3.4 bn in net sales in Q1 FY17

Gap Inc's net sales for the first quarter of fiscal year 2017 were...

Interviews View All

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search