Home / Knowledge / News / Apparel/Garments / Hampshire Group slips into deep losses in Q4'13
Hampshire Group slips into deep losses in Q4'13
01
Apr '14
Hampshire Group, Limited announced its results for the fourth quarter ended December 31, 2013.
 
For the quarter ended December 31, 2013, the Company reported net sales of $35.0 million and a loss from continuing operations of $8.9 million or $1.05 per share, as compared to net sales of $40.2 million and a loss from continuing operations of $0.6 million, or $0.08 per share, for the same period of 2012. 
 
The 2013 loss included non-cash writedowns of $8.4 million. The decrease in quarterly net sales resulted from the expiration of several licensing agreements at the end of 2012. Increased sales in our remaining Men's Brands division partially offset a decrease in net sales in our Rio Garment division
 
Gross profit for the quarter ended December 31, 2013 was $5.8 million, or 16.6% of net sales, compared to $8.3 million, or 20.6% of net sales, in the same period of 2012. The decrease in gross profit was primarily due to a writedown of accumulated obsolete inventory at Rio Garment and the impact of lower volume. Gross profit margin from ongoing operations showed year-over-year improvement consistent with corporate expectations.
 
Selling, general and administrative (“SG&A”) expenses, excluding non-cash write downs of $7.6 million, for the quarter ended December 31, 2013 declined from $7.8 million (19.3% of net sales) in 2012, to $7.4 million (21.1% of net sales). The increase in SG&A expenses as a percentage of sales stemmed from negative operating leverage on declining sales. 
 
The nominal decline in SG&A expenses reflects initiatives taken during 2013 to eliminate overhead, reduce fixed costs, and shift where possible to variable expenses tied to sales. These cost controls are geared toward producing a smaller infrastructure commensurate with current sales. 
 
Our fourth quarter expenses include unanticipated manufacturing and shipping expenses associated with Rio Garment, where higher than expected costs are expected to continue into the first quarter of 2014 but not into the second quarter of 2014.
 
We incurred several one-time charges during the fourth quarter, including the previously mentioned inventory writedown, as well as two significant non-cash charges associated with our New York headquarters lease ($5.5 million) and goodwill associated with the 2011 acquisition of Rio Garment ($2.1 million). None of these charges affected our fourth quarter cash flow.
 
For the quarter ended December 31, 2013, the Company’s adjusted earnings before interest, taxes, depreciation and amortization, referred to as adjusted EBITDA, was $0.6 million compared to $1.8 million for the same period of 2012. 


Must ReadView All

Textiles | On 31st May 2016

FICCI forecasts 7.7% GDP growth for Indian economy in FY17

The results of latest round of the Federation on Indian Chambers of...

Apparel/Garments | On 31st May 2016

China to open e-commerce to foreign investment

In a major policy decision, China has decided to lift restrictions to ...

Courtesy- DyStar

Textiles | On 31st May 2016

DyStar launches Cadira Polyester for resource efficiency

DyStar Group, solution provider offering a complete range of...

Interviews View All

Amrit Sethia
SOIE

What are the emerging trends in the intimatewear category for women in...

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

What is the influence of foreign trends and designs on Indian fashion?

Rajiv Sirohi
Shara

What kind of fabric is in demand in export markets of home textiles? What...

Silke Brand-Kirsch
Schlegel und Partner

<b><i>Silke Brand-Kirsch, executive partner of Schlegel und Partner, a...

Giorgio Mantovani
Corman S.p.A

<b><i>Giorgio Mantovani, MD of Corman, with a presence in both Milano and...

Steve Cole
Xerium Technologies

<b><i>Steve Cole of Xerium Technologies discusses the industry. Xerium is...

Yash P. Kotak
Bombay Hemp Company

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

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Ritu Kumar
Label Ritu Kumar

"There are a lot of people wearing western clothes in India as well. But...

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
May 2016

F2F Magazine

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search