Total company net sales for the first quarter of 2018 decreased by 3 per cent from the same period last year to $38.8 million. Comparable retail stores net sales at both Robert Graham and SWIMS increased 16 per cent as both full price and outlet stores contributed strong double digit sales gains across the brands which helped drive the 12 per cent improvement at Consumer Direct. Wholesale segment sales declined 8 per cent as improvements at Robert Graham were offset by reductions at Hudson and SWIMS.
Selling, general and administrative expenses for the quarter ended March 31, 2018, were $15.3 million compared to $17.4 million in the same quarter of the prior year. Selling, general and administrative expenses as a percentage of net sales decreased to 39.5 per cent from 43.4 per cent in the first quarter of 2017. These improvements relate to the permanent re-structure of certain wholesale selling commissions and efficiencies gained by consolidating certain administrative functions.
Adjusted EBITDA for the first quarter of 2018 was $1.5 million as compared to $2.5 million for the same quarter last year. Last year’s adjusted EBITDA included the one-time $1.4 million accounting adjustment for inventory valuation that benefited gross profit. Without the adjustment, first quarter 2018 adjusted EBITDA would have exceeded last year by $0.4 million.
"Our stores at both Robert Graham and SWIMS outperformed during the first quarter by posting significant comparable store sales gains. The Consumer Direct segment produces margins that are on average 27 points better than wholesale, thus we did not see as much margin erosion from the Wholesale segment decline. Department store brick and mortar shoppers continue to slowly migrate toward ecommerce channels. This ecommerce migration has had some impact on Hudson’s channel distribution. Our SWIMS wholesale business was impacted by a timing difference related to outgoing shipments in early Q2 that were scheduled for late Q1," Michael Buckley, chief executive officer, said.
"We remain committed to test a retail store in the US for Hudson, and Hudson’s roll-out of sportswear is on schedule for Fall 18’. Robert Graham has revitalized its Women’s offering in Spring 18’ and is poised to invest in this category as a major avenue of future growth. Robert Graham also executed a new license for tailored clothing during the quarter. Lastly, at SWIMS, our Spring 18’ expanded assortment has been met with high regard from the market, and we expect to see a favorable impact in the second quarter of 2018. The assortment expansion augers well for the Fall 18’ season. SWIMS' first company-owned full price retail store location, in Oslo, Norway, is on schedule to open in the Fall of 2018," Buckley concluded. (RR)
Fibre2Fashion News Desk – India
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