Home / Knowledge / News / Apparel/Garments / Inflation in apparel prices drive Broder's inventory level
Inflation in apparel prices drive Broder's inventory level
09
May '11
Broder Bros Co announced results for its first quarter ended March 26, 2011. First quarter 2011 net sales were $173.9 million compared to $153.5 million for the first quarter 2010. Income from operations for the first quarter 2011 was $6.5 million compared to a loss of ($3.3) million for the first quarter 2010. Net income for the first quarter 2011 was $4.3 million compared to a net loss of ($6.5) million for the first quarter 2010.

For the first quarter 2011, the Company reported earnings before interest, taxes, depreciation and amortization ("EBITDA") of $9.2 million compared to EBITDA of $0.9 million for the first quarter 2010. 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 $9.3 million for the first quarter 2011 compared to $1.4 million for the first quarter 2010. The improvement in EBITDA was driven by higher gross margins and higher unit volumes.

First quarter 2011 gross profit was $34.5 million compared to $26.9 million for the first quarter 2010. First quarter 2011 gross margin was 19.8% compared to 17.5% one year prior. The increase in gross profit was attributable to an increase in units sold and management's continued focus on improved pricing and purchasing activities.

The Company's major suppliers announced cost increases in January 2011 and again in late March 2011 or early April 2011 following three cost increases announced from July 2010 through December 2010. First quarter 2011 gross profit included essentially no benefit resulting from cotton price increases. The Company increased its selling prices in response to each of the cost increases imposed by manufacturers but the Company did not raise selling prices on a per unit basis as much as the Company's costs have risen due to competitive factors.

According to data provided by CREST, the U.S. imprintable activewear market grew 7% in units sold during the first quarter 2011. The Company's units sold also grew by 7% during the period when using the comparable period used by CREST, which was January 1, 2011 through March 31, 2011. The Company first quarter 2011 began December 26, 2010 and ended March 26, 2011.

During the first quarter 2011, Company recorded restructuring charges of $0.1 million in interest accretion for closed facilities.

Highlighted charges recorded during the first quarter 2010 consisted of $0.1 million in restructuring charges due to interest accretion on restructuring charges for closed facilities and other highlighted charges of $0.4 million consisted of severance.

The Company relies primarily upon cash flow from operations and borrowings under its revolving credit facility to finance operations, capital expenditures and debt service requirements. Borrowings and availability under the revolving credit facility fluctuate due to seasonal demands. Historically, borrowing levels have reached peaks during the middle of a given fiscal year and low points during the last quarter of the fiscal year.


Must ReadView All

Apparel/Garments | On 23rd Sep 2017

AAFA urges negotiators to preserve TPLs in NAFTA

The American Apparel & Footwear Association (AAFA), an alliance of...

Textiles | On 23rd Sep 2017

SIMA urges Centre to re-look duty drawback rates

he Southern India Mills’ Association (SIMA) has appealed to the...

Textiles | On 23rd Sep 2017

PKR 690.65-mn budget for Pakistan Cotton Committee

The Pakistan Central Cotton Committee (PCCC) recently approved a PKR...

Interviews View All

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Larry L Kinn
Suominen Corporation

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

Lynda Kelly
Suominen Corporation

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

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Sonam & Paras Modi
SVA

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

Igor Chapurin
Chapurin

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

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

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

September 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
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

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
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

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
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

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
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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