Home / Knowledge / News / Apparel/Garments / Private Label sales fall at Tarrant Apparel Group
Private Label sales fall at Tarrant Apparel Group
20
Nov '08
Tarrant Apparel Group announced financial results for the quarter and nine months ended September 30, 2008.

The Company reported total net sales of $56.0 million in the third quarter of 2008, a 20.3% decrease compared to $70.2 million in the same period in 2007. Private Brands sales were $10.2 million in the 2008 third quarter, compared to $12.0 million in the third quarter of 2007, due primarily to lower sales of the American Rag Cie brand to Macy's Merchandising Group.

Private Label sales in the quarter were $45.8 million, as compared to $58.2 million reported in the same period last year, with the decrease in the third quarter of 2008 resulting primarily from reduced demand by our customers due to a poor retail environment. The decrease in Private Label sales in the third quarter of 2008 was partially offset by a $7.6 million increase in sales to a related party.

Gross profit decreased by $3.6 million or 28.1% to $9.3 million in the third quarter of 2008 from $12.9 million in the third quarter of 2007. The decrease in gross profit was primarily due to a decrease in sales. As a percentage of total net sales, gross profit decreased from 18.4% in the third quarter of 2007 to 16.6% in the third quarter of 2008 due to a higher proportion of lower margin sales.

Selling, general and administrative expense for the third quarter of 2008 was $9.2 million compared to $9.9 million in the 2007 third quarter. As a percentage of total net sales, selling, general and administrative expense increased from 14.0% one year earlier versus 16.5% for the same period this year. The increase in selling, general and administrative expenses as a percentage of total net sales in the third quarter of 2008 was due primarily to an additional allowance for bad debts of $0.5 million related to a receivable with Mervyn's.

Royalty expense was $414,000 in the 2008 third quarter compared to $421,000 in the same period one year ago.

Loss from operations in the third quarter of 2008 was $341,000 compared to income from operations of $2.7 million in the third quarter of 2007.

Other income was $1.0 million in the third quarter of 2008, compared to $3.9 million in the third quarter of 2007. Other income in the third quarter of 2008 included a gain on settlement of $0.9 million. Other income in the third quarter of 2007 included a gain of $3.8 million on the sale of certain Mexico assets. Other expense in the 2007 third quarter included $5.0 million of expenses of financing and related costs and the remaining value of the warrants to credit facility and placement agent upon repaying the Company's term loan in full.

Net income was $207,000, or $0.01 per basic and diluted share for the 2008 third quarter, compared to net income of $1.6 million, or $0.05 per basic and diluted share for the 2007 third quarter.

For the nine months ended September 30, 2008, the Company reported total net sales of $157.8 million, a decline of 15.4% compared to $186.4 million in the year earlier period. Gross profit decreased by $7.5 million or 19.9%, to $30.3 million in the first nine months of 2008 from $37.8 million in the first nine months of 2007.


Must ReadView All

ITC, ICS tie up to help Moroccan textile value chain

Textiles | On 21st Apr 2018

ITC, ICS tie up to help Moroccan textile value chain

The International Trade Centre (ITC) has partnered with ICS, which...

Bangladesh garment manufacturers call for fair pricing

Apparel/Garments | On 21st Apr 2018

Bangladesh garment manufacturers call for fair pricing

Bangladesh garment manufacturers want a ‘commensurate adjustment’ by...

Pak ministry proposes extension to PM package for 2018-19

Textiles | On 21st Apr 2018

Pak ministry proposes extension to PM package for 2018-19

Pakistani textile ministry has reportedly proposed extending the...

Interviews View All

Manfred Mentges
Sedo Treepoint GmbH

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

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Silke Brand-Kirsch
Schlegel und Partner

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

Kerem Durdag
Biovation II LLC

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

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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

Leave your Comments


April 2018

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


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