Home / Knowledge / News / Apparel/Garments / Decrease in wholesale sales of William Rast brand
Decrease in wholesale sales of William Rast brand
17
Aug '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 second quarter ended June 30, 2010.

Three Months Ended June 30, 2010
Net revenue for the second quarter of 2010 decreased 31.2% to $6.8 million compared with net revenue of $9.9 million for the second quarter of 2009.

The decrease in net revenue was due primarily to decreased People's Liberation sales from its exclusive license and distributor relationship with Charlotte Russe and a decrease in wholesale sales of its William Rast brand in the United States as a result of current macro economic conditions resulting in retail store closures and major retailers carrying reduced amounts of inventory.

The decrease in net sales for the three months ended June 30, 2010 was offset primarily by increased retail sales from the Company's William Rast and J. Lindeberg retail stores which resulted from more retail stores being open in the second quarter of 2010 as compared to the second quarter of 2009.

“We are focused on building awareness and visibility by increasing the number of our branded stores for both William Rast and J. Lindeberg,” 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. This August, we opened our latest William Rast retail store in Miami, Florida, which is part of our expansion plan to roll-out additional retail stores in major metropolitan locations over the next several years, and now gives us a total of four William Rast retail stores and three J. Lindeberg retail stores in the U.S.”

Gross profit for the second quarter of 2010 was $3.6 million compared with $4.7 million for the second quarter of 2009. Gross margin improved to 53.1% in the second quarter of 2010 from 47.6% in the second quarter of 2009. The improvement was driven by design revenue received from a design and license agreement the Company entered into in May 2010 with a major retailer and increased retail sales of the Company's J. Lindeberg and William Rast product lines at higher gross margins.

Selling, design and production expenses for the second quarter were $1.7 million, compared to $2.3 million in the prior year period. As a percentage of net revenue, selling, design and production expenses slightly increased to 24.4% compared to 22.6% in the prior year.

General and administrative expenses for the second quarter of 2010 were $2.4 million, compared to $1.6 million in the prior year period. As a percentage of net revenue, general and administrative expenses increased to 35.6% from 16.3% in the prior year. Total operating expenses for the second quarter of 2010 were $4.1 million, compared to $3.9 million a year ago.

The increase in operatingexpenses was due primarily to the expansion of our retail store operations. In the second quarter of 2009, we operated two retail stores, compared to six retail stores in the second quarter of 2010. The increase in operating expenses was offset by a decrease in selling, design and promotion expense during the three months ended June 30, 2010.


Must ReadView All

Textiles | On 26th Jul 2017

Vietnam’s textile & garment exports cross $13bn in H1

Vietnam earned $13.... billion from textile and garment exports in...

Courtesy: IVL

Textiles | On 26th Jul 2017

IVL completes PTA capacity expansion in Europe

Indorama Ventures Public Company Ltd (IVL), a global chemical...

Textiles | On 26th Jul 2017

Textile Corp of America to create 1000 jobs in Tennessee

Textile Corporation of America Inc, a leading textile manufacturer,...

Interviews View All

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Cindy McNaull
Cordura

We have broad range of options in durable fabrics

Ashok Desai
Bombay Textile Research Association

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

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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

July 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

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

Yes No

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

Yes No

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


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



X