Home / Knowledge / News / Apparel/Garments / Broder Bros reports Q4 & fiscal year 2010 results
Broder Bros reports Q4 & fiscal year 2010 results
28
Mar '11
Broder Bros Co announced results for its fourth quarter and fiscal year ended December 25, 2010. The results included in this earnings release are consistent with the preliminary results included in the Company's Current Report issued on March 8, 2011.

Fourth Quarter 2010 Results Compared to Fourth Quarter 2009 Results

Fourth quarter 2010 net sales were $215.7 million compared to $182.8 million for the fourth quarter 2009. Income from operations for the fourth quarter 2010 was $12.5 million compared to a loss of ($0.2) million for the fourth quarter 2009. Net income for the fourth quarter 2010 was $10.1 million compared to a net loss of ($2.9) million for the fourth quarter 2009.

For the fourth quarter 2010, the Company reported earnings before interest, taxes, depreciation and amortization ("EBITDA") of $16.0 million compared to EBITDA of $3.7 million for the fourth quarter 2009. A reconciliation of EBITDA to net income (loss) is set forth at the end of this earnings release.

Results include the impact of certain restructuring and other highlighted charges discussed below. Excluding these highlighted charges, EBITDA was $15.8 million for the fourth quarter 2010 compared to $5.5 million for the fourth quarter 2009. The improvement in EBITDA was driven by higher gross margins and higher unit volumes.

Fourth quarter 2010 gross profit was $40.9 million compared to $30.9 million for the fourth quarter 2009. Fourth quarter 2010 gross margin was 19.0% compared to 16.9% in the fourth quarter 2009. The increase in gross profit was attributable to an increase in units sold, sales of products in the fourth quarter 2010 which the Company had purchased when their costs were lower, and management's continued focus on improved pricing and purchasing activities, net of an increase in inventory reserves.

The Company regained lost market share during the fourth quarter 2010. S.T.A.R.S. reported that the U.S. imprintable activewear market grew 7% in units sold during the fourth quarter 2010. The Company's units sold grew by approximately 14% during the period.

Fourth quarter 2010 gross profit included an $8.0 million benefit resulting from cotton prices increases. The Company's major suppliers announced three cost increases during 2010. The Company increased its selling prices in response to each of the cost increases imposed by manufacturers and achieved higher gross margins during the fourth quarter 2010 relative to the fourth quarter 2009 as the Company sold through inventory with pre-price increase costs.

During the fourth quarter 2010, the Company increased its inventory reserves by $6.5 million due to the anticipated reduction in selling prices for some of the Company's private label products that were discontinued as of December 2010 and in prior years. The selling price reductions will permit the Company to increase the rate of sales on these slower-moving, discontinued styles during 2011.

Must ReadView All

Apparel/Garments | On 23rd May 2017

Gap Inc earns $3.4 bn in net sales in Q1 FY17

Gap Inc's net sales for the first quarter of fiscal year 2017 were...

Textiles | On 23rd May 2017

Grasim's VSF business net revenue up 12% in Q4 FY17

The viscose staple fibre (VSF) business of Grasim Industries has...

Apparel/Garments | On 23rd May 2017

Apparel, footwear use may rise by 63% in 2030: Report

The apparel and footwear consumption is projected to rise by 63 per...

Interviews View All

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Igor Chapurin
Chapurin

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

Bani Batra

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

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


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