Strong fourth quarter gross margin of 50.4% - PPLB

31 Mar '10

5 min read

People's Liberation Inc the designer, marketer and seller of high-end casual apparel under the brand names William Rast, People's Liberation, and in the United States, J.Lindeberg, announced financial results for the fourth quarter and full year ended December 31, 2009.

Year Ended December 31, 2009

For the year ended December 2009, net sales increased 10.7% to $35.6 million from $32.2 million in the same period in the prior year. Gross profit increased to $17.2 million, or 48.4% of net sales, for the year ended December 2009, from $15.5 million, or 48.3% of net sales, for the year ended December 2008. “I am pleased to announce that this year marked significant progress in our business as we reported record full year sales results and an improved bottom-line,” said the Company's Chief Executive Officer, Colin Dyne.

“We are extremely positive about the future of our brands and continue to remain intensely focused on our core business and growth initiatives,” continued Mr. Dyne. “We look forward to continuing our retail expansion for both William Rast and J.Lindeberg in new and existing markets in 2010 and beyond."

Net loss for the year ended December 2009 was $0.7 million, compared to a net loss of $3.1 million in 2008. Net loss attributable to common stockholders for the year ended December 2009 was $1.7 million, or $(0.05) per diluted share, compared to a net loss attributable to common stockholders of $4.5 million, or $(0.12) per diluted share, for 2008. The decrease in net loss attributable to common stockholders during the year ended December 2009 was due primarily to increased net sales and gross profit and decreased noncontrolling interest and operating expenses incurred during the year.

As of December 31, 2009, the Company had cash and cash equivalents of $2.6 million, working capital of approximately $1.7 million and factor availability of approximately $776,000.

Recent Developments & Highlights

• During Fashion Week in February, 2010, Justin Timberlake and Trace Ayala presented their Fall/Winter 2010 William Rast collection at a fashion show held at Cedar Lake in NYC. The show launched a capsule collection of William Rast footwear with boots complementing the William Rast DNA and reflecting the biker and Americana influences, which are designed to work with William Rast denim. This season's show was presented by Sony. Other sponsors included Maybelline New York, Sebastian Professional, CRYSTALLIZEDTM - Swarovski Elements, 901 Silver Tequila, Neuro, La Caravelle Champagne and Coors Light.
• On January 29, 2010, the Company entered into a sponsorship agreement with Sony Electronics Inc. The sponsorship agreement provided Sony Electronics with the title sponsorship at the Company's William Rast fashion show held during Fashion Week in New York City in February 2010. The sponsorship agreement also grants Sony Electronics with title sponsorship in the Company's “My Name is William Rast 2010 Campaign” and the placement of Sony products in the Company's William Rast retail and pop-up stores.

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