Home / Knowledge / News / Apparel/Garments / G&K operating margins increase significantly
G&K operating margins increase significantly
30
Jan '08
G&K Services Inc reported revenue for the second quarter ended December 29, 2007 of $255.3 million, a 10.6 percent increase from previous year revenue of $230.8 million. This record quarterly revenue was driven by rental revenue growth and solid gains in the company's direct sale business. Strong revenue contribution from acquisitions and the benefit of foreign currency translation also added to the increase in revenue.

Second quarter earnings per diluted share exceeded expectations and rose to $0.60, a 33.3 percent increase from $0.45 per diluted share during the prior-year period. This increase in earnings compared to the prior-year was driven by higher operating income as a result of overall revenue growth, lower merchandise costs and savings achieved from on-going productivity initiatives.

The improvement in earnings was partially offset by higher fuel costs, investments in growth and technology initiatives and one-time costs of approximately $0.03 per diluted share related to a fire at one of the company's production facilities.

During the first half of fiscal 2008, the company also reported a significant increase in cash flow. For the six months ended December 29, 2007, cash provided by operating activities increased 55.1 percent as compared to the prior-year period. This strong level of cash flow generation was driven primarily by a 27.3 percent improvement in operating income over the prior-year period.

"We're pleased to report another strong year-over-year increase in revenue, operating margin, earnings and cash flow," said Richard Marcantonio, chairman and chief executive officer. "Our record quarterly revenue result marks an annual run-rate that exceeds $1 billion. The continued execution of our strategic initiatives will further accelerate future revenue growth, operating margin expansion and cash flow production."

Must ReadView All

Textiles | On 9th Dec 2016

ACIMIT signs MoU with Pakistan textile bodies

In a bid to strengthen the trading in garments and textiles between...

Textiles | On 9th Dec 2016

‘Less demand may make it hard to achieve export target’

The $48 billion target for textiles and garment exports for 2016-17...

Textiles | On 9th Dec 2016

GST Council may decrease tax rates in future: CBEC

The goods and services tax (GST) Council might reduce the proposed...

Interviews View All

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Karan Arora
Karan Arora

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

Silvia Venturini Fendi
Fendi s.r.l

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

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search