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Private label business sales boost Tarrant annual income
27 Mar '08
4 min read
Net income after tax for the 2007 fourth quarter was $325,000 (or income of $0.01 per share on both basic and diluted basis) compared to income of $1.7 million (or income of $0.06 per share on both basic and diluted basis) for the 2006 fourth quarter.
Results for the Year Ended December 31, 2007:
For the twelve months ended December 31, 2007, Tarrant Apparel had net sales of $243.7 million compared to $232.4 million in the same period in fiscal 2006. The increase in net sales was primarily due to increased sales in our Private Label business, which amounted to $198.8 million in 2007 compared to $181.2 million in 2006.
The increase in 2007 came primarily from sales to New York & Co and Seven Licensing, but was partially offset by decreased sales to Kohl's and Mervyn's. Private Brands sales in 2007 totaled $44.9 million compared to $51.2 million in 2006. Sales of three brands, namely, Jessica Simpson, Alain Weiz and House of Dereon were discontinued prior to 2007.
Sales of these three brands amounted to $16.7 million in 2006. The loss in the sales of these brands was partially offset by a $9.6 million increase in the sales of our American Rag CIE brand in 2007.
Gross profit for 2007 was $48.9 million, or 20.1% of net sales, compared to $50.6 million, or 21.8 % of net sales for 2006, representing a decrease of $1.7 million or 3.4%. The decrease in gross profit for 2007 was primarily caused by a $1.5 million loss on the sale of the Company's Mexico inventory in 2007.
The Company had net income of $1.7 million (or income of $0.06 per basic and diluted share) in the 2007 fiscal year, compared to a net loss of $22.2 million (or a loss of $0.73 per basic and diluted share) in fiscal 2006. The fiscal 2007 results were impacted by a charge for $2 million in the first quarter of 2007 for due diligence and other fees incurred in connection with the subsequently terminated proposed acquisition of The Buffalo Group. The 2006 net loss included a non-cash reserve of $27.1 million relating to the recoverability of certain notes receivable.
"Despite a challenging economic environment, Tarrant Apparel reported an increase in sales in 2007,” said Gerard Guez, Chairman and Interim CEO of Tarrant Apparel Group. "During 2007, we continued our growth, despite the discontinued sales of three brands in the year, and a difficult environment during the second half of the year.
The liquidation of all our Mexico assets for cash, as well as the resolution of the tax issue with the Internal Revenue Service has strengthened our balance sheet and allowed us to drastically reduce borrowing costs. We will continue to focus on tight cost containment as well as to pursue opportunities in the market to continue our growth."
Results for the Year Ended December 31, 2007:
For the twelve months ended December 31, 2007, Tarrant Apparel had net sales of $243.7 million compared to $232.4 million in the same period in fiscal 2006. The increase in net sales was primarily due to increased sales in our Private Label business, which amounted to $198.8 million in 2007 compared to $181.2 million in 2006.
The increase in 2007 came primarily from sales to New York & Co and Seven Licensing, but was partially offset by decreased sales to Kohl's and Mervyn's. Private Brands sales in 2007 totaled $44.9 million compared to $51.2 million in 2006. Sales of three brands, namely, Jessica Simpson, Alain Weiz and House of Dereon were discontinued prior to 2007.
Sales of these three brands amounted to $16.7 million in 2006. The loss in the sales of these brands was partially offset by a $9.6 million increase in the sales of our American Rag CIE brand in 2007.
Gross profit for 2007 was $48.9 million, or 20.1% of net sales, compared to $50.6 million, or 21.8 % of net sales for 2006, representing a decrease of $1.7 million or 3.4%. The decrease in gross profit for 2007 was primarily caused by a $1.5 million loss on the sale of the Company's Mexico inventory in 2007.
The Company had net income of $1.7 million (or income of $0.06 per basic and diluted share) in the 2007 fiscal year, compared to a net loss of $22.2 million (or a loss of $0.73 per basic and diluted share) in fiscal 2006. The fiscal 2007 results were impacted by a charge for $2 million in the first quarter of 2007 for due diligence and other fees incurred in connection with the subsequently terminated proposed acquisition of The Buffalo Group. The 2006 net loss included a non-cash reserve of $27.1 million relating to the recoverability of certain notes receivable.
"Despite a challenging economic environment, Tarrant Apparel reported an increase in sales in 2007,” said Gerard Guez, Chairman and Interim CEO of Tarrant Apparel Group. "During 2007, we continued our growth, despite the discontinued sales of three brands in the year, and a difficult environment during the second half of the year.
The liquidation of all our Mexico assets for cash, as well as the resolution of the tax issue with the Internal Revenue Service has strengthened our balance sheet and allowed us to drastically reduce borrowing costs. We will continue to focus on tight cost containment as well as to pursue opportunities in the market to continue our growth."
Tarrant Apparel Group
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