Home / Knowledge / News / Apparel/Garments / Global economic uncertainty hits Checkpoint's Q2 revenues
Global economic uncertainty hits Checkpoint's Q2 revenues
03
Aug '12
Checkpoint Systems, Inc. reported financial results for the second quarter ended June 24, 2012. The Company also provided an update on the strategic business review it initiated in May, and announced a significant new profit improvement plan, Project LEAN, to return Checkpoint to profitable growth, as well as an amended Lender Agreement.

Net revenues decreased 8.5%, 4.0% on a constant currency basis, to $198.4 million from $216.8 million in the year-earlier quarter and the Company reported a loss of $2.30 per diluted share, compared with earnings of $0.24 per diluted share in the second quarter of 2011.

The Company reported adjusted non-GAAP operating income of $3.3 million in the second quarter of 2012 compared to $17.1 million in the year-earlier quarter, which included $16.7 million of other operating income due to the sale of customer related receivables associated with the renewal and extension of sales type lease arrangements.

Checkpoint Systems' interim Chief Executive Officer and President George Babich said, "Revenue continues to be impacted by global economic uncertainty, especially in Europe and disruptions caused by our Apparel Labeling restructuring. Gross profit margins continue to be impacted by under absorption as we complete our manufacturing consolidation, execution issues which are currently being addressed through our restructuring plan and unfavorable mix as a result of a large sale of Hard Tag @ Source last year. Importantly though, SG&A expenses for the second quarter decreased by $10.8 million, or 13.6%, compared with the same period last year. The second quarter of 2012 includes $5.4 million in savings from restructuring and a $2.9 million charge from contractual costs associated with the CEO transition announced in May, 2012."

Mr. Babich continued, "Although we are operating in an extremely challenging economic environment where retailers are reducing capital expenditures and ordering fewer products, we continue to win new national and international customers with our EAS solutions. With our restructuring initiatives in place, we will be well positioned for substantial growth ahead of the eventual economic improvement in our end markets."

Click here to read more details:

Checkpoint Systems Inc


Must ReadView All

Pakistan govt notifies 50% duty drawback on exports

Textiles | On 21st Oct 2017

Pakistan govt notifies 50% duty drawback on exports

The Pakistan government has notified the ‘Duty Drawback of Taxes...

Ghana sets up task force to clamp down on textile piracy

Textiles | On 21st Oct 2017

Ghana sets up task force to clamp down on textile piracy

Ghana’s ministry of trade and industry has set up a taskforce to...

Courtesy: Coach

Fashion | On 21st Oct 2017

US company Coach to change name to Tapestry from Oct 31

Coach Inc., a New York-based house of modern luxury accessories and...

Interviews View All

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Marten Alkhagen
Swerea IVF AB

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

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

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

October 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
76.8%
No
13.0%
Skip
10.1%

Total Votes: 69

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.3%
No
27.5%
Skip
10.1%

Total Votes: 69

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
85.5%
No
10.1%
Skip
4.3%

Total Votes: 69

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
75.4%
No
11.6%
Skip
13.0%

Total Votes: 69


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