Mar '11
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
Textiles | On 21st Apr 2018
ITC, ICS tie up to help Moroccan textile value chain
The International Trade Centre (ITC) has partnered with ICS, which...
Apparel/Garments | On 21st Apr 2018
Bangladesh garment manufacturers call for fair pricing
Bangladesh garment manufacturers want a ‘commensurate adjustment’ by...
Textiles | On 21st Apr 2018
Pak ministry proposes extension to PM package for 2018-19
Pakistani textile ministry has reportedly proposed extending the...
Interviews View All
Top executives
Textile industry, India
Such fairs are a must for industry to showcase new innovations
Vasanth Kumar
Max Fashion India
‘Traditional high-street retailers are now willing to offer franchisees to ...
Headhonchos
Indian textile value chain
'One nation, one tax' is a great concept
<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...
Oswal Prints Private Limited has been manufacturing and exporting ethnic...
Conceived in Europe and curated in New Delhi, NeceSera is a...
Steve Cole
Xerium Technologies
Steve Cole of Xerium Technologies discusses the industry. Xerium is the...
Paolo Ocleppo
Sandvik Hyperion
Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...
Urs Stalder
Sanitized AG
Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...
Jay Ramrakhiani
Occasions Elegance Wear
It is believed that by early 19th century, Varanasi weavers had moved away ...
Prathyusha Garimella
Prathyusha Garimella
Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...
Robert Brunner
Devereux
Golfwear and menswear brand Devereux is set for greener pastures. Robert...
Leave your Comments
Recommended
Want to know what happened in the textile world this week? Watch now!
news category
Related Categories:
Do you think the sustainability space has the needed tools and resources available for a business to lead change?
Yes No SkipActive Poll
Do you see sustainability as a route to business growth?
YesTotal Votes: 103
Do you think adopting a sustainable approach will be a profitable move for your business?
Yes No SkipActive Poll
Do you think the sustainability space has the needed tools and resources available for a business to lead change?
YesTotal Votes: 103
Do you want the world to know about your sustainability journey and your business’ environmental footprint?
Yes No SkipActive Poll
Do you think adopting a sustainable approach will be a profitable move for your business?
YesTotal Votes: 103
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?
YesTotal Votes: 103
E-News Insight
Latest News Update in Your Mail Box.
