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Tefron expects drop in Q2 financial results
06 Jul '07
2 min read
Tefron Ltd a leading producer of seamless intimate apparel and engineered-for-performance active- wear updated its expected financial results.
Tefron expects, based on preliminary data, second quarter revenues of approximately $40.5 million, representing an approximately 19% decrease from second quarter 2006 revenues of $49.7 million.
The expected decrease is due mainly to lower than anticipated active-wear and intimate apparel sales. Tefron expects that third quarter revenues will further decline due to a delay in active-wear orders, as well as the seasonal reduction in sales of its swimwear product line.
Tefron expects its second and third quarter profitability to be impacted by the lower revenue and manufacturing levels expected during these quarters.
In addition, and as management previously addressed in the Company's press release announcing its first quarter results, there are two other main factors reducing the Company's profitability.
One factor is the devaluation of the US Dollar versus the New Israeli Shekel, and the second factor is price reductions in older collections of Tefron's intimate apparel product line.
Due to these factors, Tefron expects its profitability in the second and third quarters of 2007 to be significantly below the profitability levels seen in the first quarter of 2007, and the comparable second and third quarters of 2006.
Tefron has received initial purchase orders for 'next generation' products from Nike for the third quarter. Tefron currently expects revenues to improve in the fourth quarter, mainly due to positive indications received from Nike for increased 'next generation' product orders in the fourth quarter, backed up by raw material commitments, and due to an
Tefron expects, based on preliminary data, second quarter revenues of approximately $40.5 million, representing an approximately 19% decrease from second quarter 2006 revenues of $49.7 million.
The expected decrease is due mainly to lower than anticipated active-wear and intimate apparel sales. Tefron expects that third quarter revenues will further decline due to a delay in active-wear orders, as well as the seasonal reduction in sales of its swimwear product line.
Tefron expects its second and third quarter profitability to be impacted by the lower revenue and manufacturing levels expected during these quarters.
In addition, and as management previously addressed in the Company's press release announcing its first quarter results, there are two other main factors reducing the Company's profitability.
One factor is the devaluation of the US Dollar versus the New Israeli Shekel, and the second factor is price reductions in older collections of Tefron's intimate apparel product line.
Due to these factors, Tefron expects its profitability in the second and third quarters of 2007 to be significantly below the profitability levels seen in the first quarter of 2007, and the comparable second and third quarters of 2006.
Tefron has received initial purchase orders for 'next generation' products from Nike for the third quarter. Tefron currently expects revenues to improve in the fourth quarter, mainly due to positive indications received from Nike for increased 'next generation' product orders in the fourth quarter, backed up by raw material commitments, and due to an
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