Rio Garment segment drives Hampshire Group Q2 sales

“Through our Hampshire Brands subsidiary, we were able to capture the Dockers license for tops as well as the Panama Jack license for sportswear, both well-recognized and growing brands. These new agreements will replace legacy licenses with declining sales, for which we opted to not renew and will expire at year-end.

“Our manufacturing subsidiary, Rio Garment, continues to grow and has helped us expand our product offering and pursue additional channels of distribution including the mass market retail channel where we see considerable opportunity. We recently introduced our Panama Jack line in Wal-Mart stores and are encouraged by the strong initial response,” continued Mr. Golden.

“Our branded business, scott james, while still a small part of what we produce and sell, is a higher margin business than any of our other businesses and has continued to grow its presence in department and specialty stores through expanding distribution and increases in average order size.”

Mr. Golden concluded, “As we look ahead to the second half of 2012, we expect to achieve operating profitability due to the fact that we have successfully integrated and grown our business despite the challenges of winding down the Geoffrey Beene and JOE Joseph Abboud licenses.

“The full impact of our repositioning, especially within our Hampshire Brands business, will become more evident as we enter 2013 with our Spring launch of Dockers. We remain steadfast in our commitment to drive growth in the business across all of our platforms, while also delivering long-term value to our shareholders.”

Hampshire Group Limited along with its wholly-owned subsidiaries, Hampshire Brands, Inc., Rio Garment S.A. and scott james, LLC, is a provider of fashion apparel across a broad range of product categories, channels of distribution and price points.

Hampshire Group Limited