Home / Knowledge / News / Apparel/Garments / Net sales drop at Hampshire Group
Net sales drop at Hampshire Group
Mar '11
Hampshire Group Limited announced its results for the fiscal year ended December 31, 2010 and filed its annual report on Form 10-K.

Commenting on the results, Heath L. Golden, President and CEO of Hampshire Group, remarked, “Operating results in 2010 were adversely affected by a highly promotional environment and a shift in our customer's focus towards their private and exclusive brands. We expect the inflation that the industry is currently experiencing in raw materials, labor and transportation to continue for the foreseeable future.

“As a result, we remain steadfast in our efforts to broaden our customer base, expand our sales channels, manage and reduce operating costs and eliminate the non-operational costs that we incurred over the last few years. To that end, the acquisition of scott james in the second quarter marked an important first step in our efforts to expand our sales channels and attract new customers. With a strong balance sheet as we enter 2011, we remain focused on those activities that will provide growth opportunities and maximize value for all our shareholders.”

Fiscal Year 2010 Accomplishments

• Reduced selling, general and administrative expenses by 15.6% from $39.7 million in 2009 to $33.5 million in 2010, primarily as the result of the Company's 2009 restructuring and cost reduction plans;
• Finished 2010 with a strong balance sheet that reflects $51.9 million in working capital, including $36.4 million in cash and no borrowings outstanding under the Company's credit facility;
• Elected apparel industry veterans to the Board of Directors;
• Settled all remaining litigation associated with our 2006 Audit Committee Investigation, which will eliminate the related costs going forward;
• Entered into a new $50.0 million credit facility with Wells Fargo Capital Finance, LLC that provides more operational flexibility at a lower cost; and
• Strengthened the men's business with appointment of menswear industry veteran Eric Prengel as President of the division and the acquisition of scott james.

Operating Results

Net sales decreased 27.7% to $46.5 million for the three months ended December 31, 2010 from $64.3 million for the same period last year. For the year ended December 31, 2010, net sales decreased by 18.6% to $134.5 million from $165.2 million last year. The decrease in net sales resulted from a decline in volume, principally in the Company's women's businesses and slightly lower average selling prices.

For the three months ended December 31, 2010, the Company had a loss from operations of $0.2 million compared to income from operations of $5.2 million for the same period last year. For the year ended December 31, 2010, the Company's loss from operations was $11.5 million compared to $11.7 million last year.

Gross profit declined $13.0 million in 2010, which was due to a one-time $5.1 million release of a supplier dispute reserve in 2009 and a $7.9 million general decline due to decreased volume and other factors. Despite this decline in gross profit, the loss from operations in 2010 remained comparable to 2009 due to the decrease in selling, general and administrative expenses of $6.2 million, decreased restructuring charges of $4.8 million, and decreased tender offer related costs of $2.1 million.

Must ReadView All

Union textiles minister Smriti Irani addressing at the Texprocil Annual Export Awards. Courtesy: PIB

Textiles | On 22nd Oct 2016

Govt to extend special package to home textiles segment

The Central government is likely to extend the recently approved Rs...

Reebok Liquid Speed Grey. Courtesy: Business Wire

Apparel/Garments | On 22nd Oct 2016

Reebok’s Liquid Factory brings sneaker creation to US

Reebok, a pioneer in the sporting goods industry, has brought sneaker ...

Courtesy: GHCL

Textiles | On 22nd Oct 2016

GHCL to invest Rs 67.25 crore in textile division

Chemicals and textiles firm GHCL will invest Rs 67.25 crore in its...

Interviews View All

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Abhimanyu Singh Rathore & Barbara Anna Kosiorek

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Mark Paterson
Technical Absorbents Ltd

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

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search