Activewear Apparel The activewear segment, comprised of the Delta and FunTees businesses, reported sales of $53.3 million for the three months ended March 28, 2009, an increase of 32.1% over the prior year third quarter. Sales in the FunTees business increased 70.7% as it received more programs and a higher percentage of orders for full-package products from its customers as a result of the improved quality and performance over the last several quarters. Sales of the Delta basic tees increased 14.7% during the third quarter driven by increased unit sales of 13%.
We believe that the Delta business is increasing its market share in undecorated tees through its ability to service its customers with competitively priced inventory that can be shipped the same day the order is received. During the quarter, the Company reduced its manufacturing production to manage its inventory levels. The Company expensed $0.8 million associated with the manufacturing curtailments during the three months ended March 28, 2009.
The activewear segment had an operating loss of $0.5 million for the third quarter of 2009, compared to an operating loss of $3.6 million in the prior year third quarter, which included $0.9 million in restructuring related expenses. The improved results were due primarily to increased sales, improved manufacturing costs and lower raw material and transportation expenses.
Fiscal 2009 Year to Date Results Net sales for the nine months ended March 28, 2009, were $250.5 million, an increase of $33.8 million, or 15.6% from the prior year. The sales increase was driven by organic growth in each of the Company's four business units. Net income for the nine months ended March 28, 2009 was $2.4 million, or $0.29 per diluted share, compared to the prior year's net loss of $4.8 million, or ($0.56) per diluted share, inclusive of ($0.39) per diluted share of restructuring related expenses.
Fiscal 2009 Guidance For the fiscal year ending June 27, 2009, the Company narrows its expectation for net sales to be in the range of $350 million to $360 million and earnings to be in the range of $0.70 to $0.80 per diluted share. This compares to fiscal year 2008 sales of $322.0 million and a fiscal year 2008 loss of ($0.06) per diluted share, inclusive of ($0.39) of costs associated with the textile restructuring plan. The Company remains concerned about the U.S. economy and slowing consumer demand for apparel, but believes it has taken into consideration these heightened risk factors in its expectations for the fiscal year.
Mr. Humphreys concluded, “We were pleased to complete the acquisition of The Game® and Kudzu® brands during the first week of our fourth quarter. The purchase of this business is in keeping with our strategy of acquiring brands, licensed properties, and operating companies that expand our channels of distribution, giving us additional platforms for growth. We look forward to finishing fiscal 2009 with strong organic sales growth and believe we will enter fiscal year 2010 well positioned to continue our profitable growth and build greater value for our shareholders.”
20240830145952.gif)
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
