Home / Knowledge / News / Apparel/Garments / Ennis' net earnings impacted by lower apparel sales

Ennis' net earnings impacted by lower apparel sales

20
Dec '11
Mr Keith Walters, Chairman, CEO and President, Ennis Inc
Ennis Inc. reported financial results for the three and nine months ended November 30, 2011.

Financial Overview
Our consolidated net sales for the quarter was $121.8 million, or down 9.6% from $134.8 million for the same quarter last year. Our print sales for the quarter were basically flat quarter over quarter at $69.2 million for the current quarter as compared to $69.5 million for the same quarter last year.

Our apparel sales at $52.6 million for the quarter were down $12.7 million as compared to $65.3 million for the same quarter last year due to softness in the market and competitive pricing pressures.

Overall our gross profit margins ("margins") for the quarter were 24.8% as compared to 27.1% to for the same quarter last year. On a segment basis, our print margins were basically flat at 27.8% for the current quarter versus 27.9% for the same quarter last year, while our apparel margins, due to continued higher input costs, decreased from 26.3% to 20.8%.

Our net earnings for the quarter, which were impacted by our lower apparel sales and margins, were $6.9 million or $.27 per diluted share, as compared to $9.6 million or $.37 per diluted share for the same quarter last year.

For the nine month period, our net sales decreased from $418.6 million for the nine months ended November 30, 2010 to $395.5 million for the nine months ended November 30, 2011, or a decrease of 5.5%.

Our print sales for the period again remained relatively stable at $205.5 million, compared to $206.5 million for the same period last year. Our apparel sales for the period were $189.9 million, as compared to $212.1 million for the same period last year, or a decrease of 10.5%.

Overall our margins for the period decreased from 28.3% to 26.3% for the nine months ended November 30, 2010 and 2011, respectively. Our print margins decreased slightly during the period from 28.8% to 28.4%, while our apparel margins decreased from 27.8% to 24.0%, again due to higher input costs.

Our net earnings for the period decreased from $34.8 million, or 8.3% of sales for the nine months ended November 30, 2010, to $28.0 million or 7.1% of sales for the nine months ended November 30, 2011. Our diluted earnings decreased from $1.34 per share to $1.08 per share for the nine months ended November 30, 2010 and 2011, respectively.

The Company, during the quarter, generated $14.5 million in EBITDA (earnings before interest, taxes, depreciation, and amortization) compared to $18.1 million for the comparable quarter last year. For the nine month period ended November 30, 2011, the Company generated $55.3 million of EBITDA during the period, compared to $64.1 million for the comparable period last year.

Keith Walters, Chairman, Chief Executive Officer and President, commented by saying, “Overall the operational results delivered for the quarter were as expected from both the print and apparel perspective. Our print operations continued to deliver steady revenue levels and operational results, while our apparel margins continued to be compressed as expected by higher raw material costs.


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 15th May 2021

Australian govt earmarks Au$1 mn for boosting fashion industry

The government of Australia has earmarked Au$1 million to promote and ...

Pic: Sorbis / Shutterstock.com

Apparel/Garments | On 15th May 2021

Prime Content| US textiles & apparel imports grow 4.32% in Q1 2021

The import of textiles and apparel by the United States increased by...

Pic: Amanda Wakeley

Fashion | On 15th May 2021

British luxury fashion company Amanda Wakeley enters administration

The British luxury fashion designer Amanda Wakeley’s company, AW...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

One thing is certain, online sales will go up

Textile Industry, Head honchos

Textile Industry
Head honchos

Great step towards realising end goal of 'AtmaNirbhar Bharat'

Textile Industry, Head honchos

Textile Industry
Head honchos

Good tidings expected for textile industry

Shambhu Nath Jha,

Shambhu Nath Jha

Leading research and consulting firm Fact.MR recently launched a report on ...

Ismail Ajani,

Ismail Ajani

Hollywood Footwear’s story began in 1946 when Jummabhai Ajani started the...

P V Kadole,

P V Kadole

Nine co-operative organisations from Ichalkaranji came together to form an ...

Daniel Roxbury, University of Rhode Island

Daniel Roxbury
University of Rhode Island

Assistant professor Daniel Roxbury and former URI graduate student...

Silverio Baranzano, Fitesa

Silverio Baranzano
Fitesa

Fitesa is a leader in the nonwoven fabrics industry, specialising in...

Shujaul Rehman, Garware Technical Fibres

Shujaul Rehman
Garware Technical Fibres

Garware Technical Fibres Ltd (formerly Garware-Wall Ropes Ltd) is a...

Aprajita Toor, Aprajita Toor

Aprajita Toor
Aprajita Toor

The creations by Aprajita Toor were born out of a deep desire to create...

Ramya Rao & Kavea R Chavali, Kalaneca

Ramya Rao & Kavea R Chavali
Kalaneca

<div>The journey of Kalaneca (kala-Art, Neca- Nikaah) formally began in...

Suman Nathwani, Suman Nathwani

Suman Nathwani
Suman Nathwani

Designer <b>Suman Nathwani</b> talks about her journey of opening a...

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

Leave your Comments


May 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search