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Hampshire's Q1 gross profit decline
09 May '08
4 min read
If current economic conditions persist, gross profit and operating results will be adversely affected for the remainder of 2008. In an effort to reduce the potential impact of these conditions, the Company initiated a restructuring and cost reduction plan during the second quarter of 2008.
Basic and diluted loss per share from continuing operations was $0.42 and $0.38 for the three months ended March 29, 2008 and March 31, 2007, respectively. Basic and diluted loss per share based on net loss was $0.48 for the three months ended March 29, 2008 and March 31, 2007.
On May 2, 2008, the Company initiated a restructuring and cost reduction plan that involves the reduction of its workforce and includes the consolidation and relocation of some of its operations, which will lead to the closing of its Hauppauge, NY office.
In addition to the reduction in workforce, the restructuring and cost reduction plan will eliminate certain non-payroll expenses. The centralization of the women's divisions into one office in New York, the expanded capabilities of the Company's Hong Kong based subsidiary, and the consolidation of certain back office functions into the Company's South Carolina office will help facilitate the implementation of the plan.
At March 29, 2008, cash and cash equivalents totaled $38.1 million compared with $48.4 million at December 31, 2007. In addition, total outstanding debt was $55,000 and $74,000 at March 29, 2008 and December 31, 2007, respectively.
Michael Culang, Chief Executive Officer, stated: “The first quarter was very challenging and we expect these challenges to continue given the deteriorating economic conditions faced by both our customers and consumers.
We have been proactive in exiting underperforming businesses that were incongruous with our marketing strategy resulting in liquidation of underperforming working capital and an intensified focus on our core businesses. We intend to further improve and tighten our management of costs.
As part of these efforts, we will continue the expansion of the role played by our offices in Asia as we view this action as integral to dealing with the realities of current economic conditions as well as the challenges presented by a rapidly changing retail landscape.”
Basic and diluted loss per share from continuing operations was $0.42 and $0.38 for the three months ended March 29, 2008 and March 31, 2007, respectively. Basic and diluted loss per share based on net loss was $0.48 for the three months ended March 29, 2008 and March 31, 2007.
On May 2, 2008, the Company initiated a restructuring and cost reduction plan that involves the reduction of its workforce and includes the consolidation and relocation of some of its operations, which will lead to the closing of its Hauppauge, NY office.
In addition to the reduction in workforce, the restructuring and cost reduction plan will eliminate certain non-payroll expenses. The centralization of the women's divisions into one office in New York, the expanded capabilities of the Company's Hong Kong based subsidiary, and the consolidation of certain back office functions into the Company's South Carolina office will help facilitate the implementation of the plan.
At March 29, 2008, cash and cash equivalents totaled $38.1 million compared with $48.4 million at December 31, 2007. In addition, total outstanding debt was $55,000 and $74,000 at March 29, 2008 and December 31, 2007, respectively.
Michael Culang, Chief Executive Officer, stated: “The first quarter was very challenging and we expect these challenges to continue given the deteriorating economic conditions faced by both our customers and consumers.
We have been proactive in exiting underperforming businesses that were incongruous with our marketing strategy resulting in liquidation of underperforming working capital and an intensified focus on our core businesses. We intend to further improve and tighten our management of costs.
As part of these efforts, we will continue the expansion of the role played by our offices in Asia as we view this action as integral to dealing with the realities of current economic conditions as well as the challenges presented by a rapidly changing retail landscape.”
Hampshire Group Limited
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