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Tarrant Apparel Private Brands sales go up in Q3
25 Dec '07
3 min read
Tarrant Apparel Group announced financial results for the three months and nine months ended September 30, 2007.
Results for the Quarter Ended September 30, 2007:
The Company reported net sales of $70.2 million in the third quarter of 2007, a 28% increase compared to $54.6 million in the same period in 2006.
Private Brands sales were $12.0 million in the 2007 quarter, a 41% increase compared to $8.5 million in the third quarter of 2006, with the increase coming mainly from an increase in sales of American Rag CIE brand to Macy's Merchandising Group in the third quarter of 2007. Private Label sales increased 26% in the 2007 quarter to $58.2 million from $46.1 million reported in the same period last year.
Gross profit for the third quarter of 2007 was $12.9 million, a 9% increase compared to $11.8 million in the third quarter of 2006. As a percentage of net sales, gross profit declined from 21.6% in the third quarter of 2006 to 18.4% in the third quarter of 2007. The decrease in gross margin in 2007 was due primarily to a $1.4 million markdown taken on certain fabric inventory in Mexico.
Selling, general, and administrative expenses for the third quarter of 2007 were $9.9 million compared to $9.1 million in the 2006 third quarter. As a percentage of net sales, selling, general and administrative expenses decreased to 14.1% versus 16.7% for the same period of the prior year.
Income from operations was $2.7 million in the third quarter of 2007 compared to a loss of $24.7 million in the third quarter of 2006. The 2006 results included a non-cash charge from the reserve of certain notes receivable (associated with the company's previously owned Mexico operation) amounting to $27.1 million.
Results for the Quarter Ended September 30, 2007:
The Company reported net sales of $70.2 million in the third quarter of 2007, a 28% increase compared to $54.6 million in the same period in 2006.
Private Brands sales were $12.0 million in the 2007 quarter, a 41% increase compared to $8.5 million in the third quarter of 2006, with the increase coming mainly from an increase in sales of American Rag CIE brand to Macy's Merchandising Group in the third quarter of 2007. Private Label sales increased 26% in the 2007 quarter to $58.2 million from $46.1 million reported in the same period last year.
Gross profit for the third quarter of 2007 was $12.9 million, a 9% increase compared to $11.8 million in the third quarter of 2006. As a percentage of net sales, gross profit declined from 21.6% in the third quarter of 2006 to 18.4% in the third quarter of 2007. The decrease in gross margin in 2007 was due primarily to a $1.4 million markdown taken on certain fabric inventory in Mexico.
Selling, general, and administrative expenses for the third quarter of 2007 were $9.9 million compared to $9.1 million in the 2006 third quarter. As a percentage of net sales, selling, general and administrative expenses decreased to 14.1% versus 16.7% for the same period of the prior year.
Income from operations was $2.7 million in the third quarter of 2007 compared to a loss of $24.7 million in the third quarter of 2006. The 2006 results included a non-cash charge from the reserve of certain notes receivable (associated with the company's previously owned Mexico operation) amounting to $27.1 million.
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