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

Apparel/Garments | On 28th Jul 2017

DuPont launches new stretchable electronic inks, films

DuPont Advanced Materials has announced availability of its newest...

Textiles | On 28th Jul 2017

Clariant, Huntsman present update on planned merger

Clariant and Huntsman Corporation have presented a first update on...

Apparel/Garments | On 28th Jul 2017

Columbia Sportswear posts Q2 2017 net sales of $398.9 mn

Columbia Sportswear Company has recorded net sales of $398.9 million...

Interviews View All

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Suresh Patel
Sidwin Fabric

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

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Yash P. Kotak
Bombay Hemp Company

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

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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

July 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
61.1%
No
22.2%
Skip
16.7%

Total Votes: 18

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
33.3%
No
44.4%
Skip
22.2%

Total Votes: 18

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
83.3%
No
5.6%
Skip
11.1%

Total Votes: 18

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
50.0%
No
11.1%
Skip
38.9%

Total Votes: 18


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



X