Steep rise in seamless apparel sales – Tefron
Tefron Ltd., a leading producer of seamless intimate apparel and engineered-for-performance (EFPTM) active wear, announced financial results for the third quarter of 2011.
Commenting on the results, Amit Meridor, Tefron's CEO, said: "I am pleased to report a significant increase in the strength of sales at Tefron in the third quarter. We saw very good strength in sales in the intimate apparel and active wear however, of particularly note was the steep 75% rise in sales in "seamless" apparel in the third quarter where we have reestablished ourselves as global leaders in the sector.
We also achieved significant results in bringing in new Mass-Market customers for the retail sector in North America. We are continuing to invest significantly in developing technologies. During the third quarter we deepened development of four groundbreaking new technologies, which will serve as a basis for continued growth of the company in the coming years."
Commenting on the sales growth, Arnon Tiberg, Tefron's Chairman, said, "Success in significantly increasing the number of new customers for Tefron worldwide, catapulted our sales volume in the third quarter over the equivalent period last year. In addition to the rise in Mass Market sales in the North American market, we have had a strong growth in sales supplied from the Far East.
Among the many factors contributing to the important broadening of our customer base are the improvements over the past year in the structure of our global sales operation, the introduction this year of new products in active wear and intimate apparel, and the development of new sales channels, including Home Shop Networking on TV channels and websites on the Internet."
Financial highlights for the nine month period ended September 30, 2011
• Gross profit increased by $9.1 million to $13.8 million (15.9% of sales) in the first nine months of 2011 versos $4.7 million (6.9% of sales) in the first nine months of 2010.
• EBITDA grew $3.4 million to a positive EBITDA of $1.7 million in the nine months of 2010 versos a negative EBITDA of $1.7 million in the nine months of 2010.
• Operating loss was reduced by 58.2% to $3.7 million in the first nine months of 2010 from $8.9 million in the first 9 months of 2011.
• Nine-month period ended September 30 2011
Sales in the first nine-months of 2011 totaled $86.9 million, an increase of 26.5% compared with $68.7 million during the same period last year. Sales in the "seamless" sector jumped 78% compared to the same period last year. The nine-month sales reflect an annual sales rate of more than $115 million, compared to total sales of $86 million in 2010.
Gross profit for first nine-months of 2011 totaled $13.8 million (15.9% of sales) compared with gross profit amounting to $4.7 million (6.9% of sales) in the same period last year. The significant improvement in gross profit and gross profit margin in the first nine-months of 2011 was attributed to the strong increase in sales and the success of the turnaround plan in reducing the cost of sales.