Home / Knowledge / News / Apparel/Garments / People's Liberation delivers strong Q1 gross margin
People's Liberation delivers strong Q1 gross margin
18
May '10
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 first quarter ended March 31, 2010.

Three Months Ended March 31, 2010
Net revenue for the first quarter of 2010 increased 11.0% to $8.4 million compared with net revenue of $7.5 million for the first quarter of 2009. The increase in net revenue was due to increased retail sales and sponsorship revenue received from William Rast's sponsorship agreement offset by a net decrease in wholesale sales.

“We are extremely pleased to have delivered strong revenue for the first quarter of 2010,” stated Colin Dyne, the Company's Chairman and Chief Executive Officer. “Both our J. Lindeberg and William Rast retail stores have seen increased momentum and awareness and our J. Lindeberg store located in Miami, Florida, has performed well during its first month of operation. We are continuing to execute on our key initiatives and are confident about the long-term opportunities for our business.”

Gross profit for the first quarter of 2010 increased 33.7% to $4.5 million from $3.4 million for the first quarter of 2009. Gross margin improved to 53.6% in the first quarter of 2010 from 44.5% in the first quarter of 2009. The improvement was driven by a combination of sponsorship revenue received in accordance with the William Rast sponsorship agreement which revenue was generated without any corresponding cost of revenue in the quarter, and increased retail sales of J. Lindeberg and William Rast product lines at higher gross margins. Excluding the sponsorship revenue, gross margin from product sales increased 360 basis points compared to the prior year period.

Selling, design and production expenses for the first quarter were $3.0 million, compared to $2.8 million in the prior year period. As a percentage of net revenue, selling, design and production expenses decreased to 36.2% compared to 37.1% in the prior year. The increase in selling, design and production expenses was due to the increased cost of the Company's William Rast fashion show held during Fashion Week in New York City in February 2010, offset by decreased design costs related to the Company's restructured design services agreement, which provides for a reduction in the fees paid for services and a reduction in sample costs.

General and administrative expenses for the first quarter of 2010 were $2.4 million, compared to $1.9 million in the prior year period. As a percentage of net revenue, general and administrative expenses increased to 28.4% from 25.8% in the prior year. The increase in general and administrative expenses was due primarily to increased rent and staffing for the Company's new retail stores.

Q1 and Recent Developments & Highlights

• In April, the Company opened its third J. Lindeberg branded retail store, located at the Aventura Mall in Miami, Florida. The store offers its men's collection and tailoring, as well as its J. Lindeberg signature golf line.


Must ReadView All

Pakistan govt notifies 50% duty drawback on exports

Textiles | On 21st Oct 2017

Pakistan govt notifies 50% duty drawback on exports

The Pakistan government has notified the ‘Duty Drawback of Taxes...

Ghana sets up task force to clamp down on textile piracy

Textiles | On 21st Oct 2017

Ghana sets up task force to clamp down on textile piracy

Ghana’s ministry of trade and industry has set up a taskforce to...

Courtesy: Coach

Fashion | On 21st Oct 2017

US company Coach to change name to Tapestry from Oct 31

Coach Inc., a New York-based house of modern luxury accessories and...

Interviews View All

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Headhonchos
Indian textile value chain

'One nation, one tax' is a great concept

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

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...

Aditi Somani
Aditi Somani

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

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

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

October 2017

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
77.1%
No
12.9%
Skip
10.0%

Total Votes: 70

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
61.4%
No
28.6%
Skip
10.0%

Total Votes: 70

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
85.7%
No
10.0%
Skip
4.3%

Total Votes: 70

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
75.7%
No
11.4%
Skip
12.9%

Total Votes: 70


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