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 Sep 2016

CMAI inks MoU with Chinese textile trade body CCCT

Indian apex clothing association, the Clothing Manufacturers...

Textiles | On 28th Sep 2016

India sees largest gain on WEF’s Competitiveness Index

India has shown the largest gain made by any country on the World...

Textiles | On 28th Sep 2016

Oerlikon to show new yarns and fibres at ITMA+CITME expo

The Oerlikon Manmade Fibers segment, the world market leader for...

Interviews View All

Claudia Kersten
Global Organic Textile Standard

Sonia Agarwal
Whitenife

Pinkesh Jain
Everflow Petrofils Ltd

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Eric Scholler
Groz-Beckert

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

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Karan Arora
Karan Arora

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

Yash P. Kotak
Bombay Hemp Company

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

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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
September 2016

September 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search