Home / Knowledge / News / Textiles / Design Within Reach Studio sales down 10.2% in Q3
Design Within Reach Studio sales down 10.2% in Q3
10
Nov '08
Design Within Reach Inc announced financial results for the third quarter and nine months ended September 27, 2008.

Third Quarter Results:

-- Product sales for the third quarter of 2008 decreased 12.9% to $39.8 million, compared to $45.8 million recorded in the third quarter of 2007. Net sales, which are primarily comprised of product sales and shipping revenue, decreased 13.7% to $42.3 million in the third quarter of 2008 from $49.0 million in the same period last year. Gross profit margin decreased to 40.9% in the third quarter of 2008, compared to 44.5% in the same period last year.

-- Net sales by sales channel were as follows:

-- Studio sales were $28.8 million in the third quarter of 2008, down 10.2% from $32.1 million in the same period last year, in part, due to declining demand attributable to current economic conditions. Design Within Reach operated 68 studios, one DWR:Tools for Living store in New York City and the DWR Annex, an outlet for returned and discontinued merchandise, at the end of the third quarter of 2008, compared to 65 studios and one outlet open at the end of the third quarter of 2007. Following the close of the quarter, the Company opened a second DWR:Tools for Living Store in Santa Monica, California.

-- Direct sales (including phone sales and sales through the Design Within Reach website) were $8.7 million in the third quarter of 2008, a decrease of approximately 26.8% from $11.8 million in the third quarter of 2007.

-- Product margin, which the Company defines as product gross profit divided by product sales, was 45.3% for the third quarter of 2008, compared to 47.9% in the third quarter of 2007. The decrease is primarily attributable to a warehouse sale held in the third quarter of 2008 for damaged and overstock inventory, for which margins were lower than margins on products sold through the Company's integrated sales channels. For more information regarding the calculation of product margin, please see the discussion under the heading "Non-GAAP Financial Information" below.

-- Selling, general and administrative expenses were $21.8 million for the third quarter of 2008, compared to $21.3 million in the same period last year.

-- Loss before income taxes for the third quarter of 2008 was $4.4 million, compared to income before income taxes of $2.3 million in the same period last year. Net loss for the third quarter of 2008 was $5.6 million, or $(0.39) per diluted share, compared to net income of $2.4 million, or $0.17 per diluted share, in the third quarter of 2007. An income tax expense of $1.2 million was recorded in the third quarter of 2008 to reverse an income tax benefit recorded in the six months ended June 28, 2008, because recent adverse changes in the economy and decline in demand for our products have indicated that, more likely than not, the tax benefit of the year-to-date pre-tax loss would not be realized during fiscal year 2008. An income tax benefit of $0.1 million was recorded in the third quarter of 2007.


Must ReadView All

Pakistan govt notifies 50% duty drawback on exports

Textiles | On 21st Oct 2017

Pakistan govt notifies 50% duty drawback on exports

The Pakistan government has notified the ‘Duty Drawback of Taxes...

Ghana sets up task force to clamp down on textile piracy

Textiles | On 21st Oct 2017

Ghana sets up task force to clamp down on textile piracy

Ghana’s ministry of trade and industry has set up a taskforce to...

Courtesy: Coach

Fashion | On 21st Oct 2017

US company Coach to change name to Tapestry from Oct 31

Coach Inc., a New York-based house of modern luxury accessories and...

Interviews View All

Representatives
Textile & apparel industry

GST is a complicated and lengthy process

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

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

October 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
77.1%
No
12.9%
Skip
10.0%

Total Votes: 70

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
61.4%
No
28.6%
Skip
10.0%

Total Votes: 70

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
85.7%
No
10.0%
Skip
4.3%

Total Votes: 70

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
75.7%
No
11.4%
Skip
12.9%

Total Votes: 70


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