Home / Knowledge / News / Apparel/Garments / Decline in sales of branded garments at Cygne Designs in Q1
Decline in sales of branded garments at Cygne Designs in Q1
20
Jun '08
Cygne Designs Inc announced results of operations for the first quarter ended April 30, 2008.

Net sales for the first quarter of 2008 were $15,282,000, a decrease of $5,581,000 from $20,863,000 net sales for the first quarter of 2007. This decrease in sales is comprised of a $1,616,000 decrease in sales from branded garments, and a decrease of $10,430,000 from the loss of business of two major customers, partially offset by an increase in sales of our private label business of $5,559,000 and an increase in our non-denim products of $906,000.

Gross profit for the first quarter of 2008 was $547,000, a decrease of $3,626,000, or 86.9%, from the gross profit of $4,173,000 for the first quarter of 2007. Gross margins decreased to 3.6% compared to 20% in the prior year period as a result of the product categories sold and the fact that the Company no longer has a guaranteed margin agreement in place with its former supplier.

Additionally, the Company's initial gross margins with its new suppliers were lower overall compared to the prior year period and, due to late deliveries during the period, the Company incurred significant chargebacks and late delivery fees, which negatively impacted gross margins during the period.

The Company recorded a net loss of $3,800,000, or $0.10 loss per share on a basic and diluted share basis, for the quarter ended April 30, 2008 as compared to a net loss of $1,372,000, or $0.05 per share on a basic and diluted share basis, for the prior year period.

The net loss of $3,800,000 for the three months ended April 30, 2008 included expenses of $1,008,000 for a severance expense attributable to the Company's former CEO and $273,000 for non-cash stock compensation issued to the Company's current CEO.

Cygne Designs Inc

Must ReadView All

Textiles | On 26th Apr 2017

Kering's consolidated revenue growth rises 31.2% in Q1

The consolidated revenue growth for luxury group Kering for the first ...

Courtesy: SKF

Textiles | On 26th Apr 2017

SKF brings predictive maintenance for machinery to India

SKF India, a global supplier of bearings, seals, mechatronics,...

Textiles | On 26th Apr 2017

Gap, Athleta to increase use of sustainable fibres

Gap, one of the world's most iconic apparel and accessories brand and ...

Interviews View All

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Kerem Durdag
Biovation II LLC

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

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Steve Cole
Xerium Technologies

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

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Yash P. Kotak
Bombay Hemp Company

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

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


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