Home / Knowledge / News / Apparel/Garments / Private Label sales drop at Tarrant Apparel
Private Label sales drop at Tarrant Apparel
20
Mar '09
Tarrant Apparel Group, a design and sourcing company for private label and private brand casual apparel, announced financial results for the fourth quarter and year ended December 31, 2008.

The Company reported 2008 fourth quarter net sales of $37.5 million, a decrease of 34.5% compared to $57.3 million in the fourth quarter of 2007. Private Label sales in the fourth quarter of 2008 were $24.0 million compared to $44.5 million the fourth quarter of 2007 due to the economic downturn and bankruptcies of significant customers such as Mervyn's. The decrease of Private Label sales in 2008 was partially offset by a $2.5 million increase in sales to a related party. Private Brands sales in the fourth quarter of 2008 totaled $13.5 million compared to $12.8 million in the fourth quarter of 2007. The increase was primarily due to increased sales to Macy's Merchandising Group.

Gross profit for the fourth quarter of 2008 was $7.3 million, compared to $11.1 million, for the fourth quarter of 2007, representing a decrease of $3.8 million or 34.3%. As a percentage of net sales, gross profit remained unchanged at 19.3% for both the fourth quarter of 2007 and 2008. The decrease in the amount of gross profit for the fourth quarter of 2008 was primarily caused by lower sales volumes.

Selling, general and administrative expenses increased by $1.1 million, or 11.0%, from $9.6 million in the fourth quarter of 2007 to $10.7 million in the fourth quarter of 2008. As a percentage of total net sales, these expenses increased from 16.8% in the fourth quarter of 2007 to 28.6% in the fourth quarter of 2008. Included in selling, general and administrative expenses in the fourth quarter of 2008 was a $1.6 million reserve on a long-term due from related parties. Included in selling, general and administrative expenses in the fourth quarter of 2007 was a $1.0 million reserve on a long-term due from related parties. Adjustment to fair value of long-term due from related parties was $0.8 million in the fourth quarter of 2007. There was no such adjustment in the fourth quarter of 2008.

Royalty expenses decreased by $297,000, or 45.6%, from $651,000 in the fourth quarter of 2007 to $354,000 in the fourth quarter of 2008. The decrease was caused by lowered royalty rates in the fourth quarter of 2008 under the amended license agreement for the American Rag Cie brand. As a percentage of total net sales, these expenses decreased from 1.1% in the fourth quarter of 2007 to 0.9% in the fourth quarter of 2008.

Goodwill impairment charges were $1.4 million in the fourth quarter of 2008, compared to no such charge in the fourth quarter of 2007. This impairment was caused by the disposition of Tarrant Apparel's 45% membership interest in American Rag Cie LLC in connection with settlement of the litigation with American Rag Cie.

Loss from operations was $5.2 million in the fourth quarter of 2008, or 13.8% oftotal net sales, compared to $61,000 in the fourth quarter of 2007, or 0.1% of total net sales as a result of the factors discussed above.


Must ReadView All

Textiles | On 24th Jun 2017

Applied DNA to tag cotton for 2017/18 US ginning season

Applied DNA, provider of DNA-based supply chain security,...

Apparel/Garments | On 24th Jun 2017

NPD Group launches Trend Tracker for apparel trends

Global information company the NPD Group has launched Trend Tracker,...

Textiles | On 24th Jun 2017

Cotton USA’s first innovation competition in UK ends

Cotton USA has announced the successful close to its first innovation ...

Interviews View All

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Silke Brand-Kirsch
Schlegel und Partner

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

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Urs Stalder
Sanitized AG

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

Jay Ramrakhiani
Occasions Elegance Wear

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

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

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

news category


Related Categories:
June 2017

June 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