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

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

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Vikas Banduke

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

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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