Increase in Private label sales boosts TAG Q1 gross profit
16 May '06
3 min read
Tarrant Apparel Group, a design and sourcing company for private label and private brands casual apparel, announced financial results for the first quarter ended March 31st 2006.
Net sales for the first quarter of 2006 increased 36.7 percent to $61.3 million from $44.8 million reported in the same period last year. The increase was due to higher sales in both the company's Private Brands and Private Label businesses.
Private Brands sales increased 69.4 percent to $19.2 million compared to $11.3 million in the first quarter of 2005. Private Label sales increased by 25.6 percent in the quarter, to $42.1 million from $33.5 million reported in the same period last year.
Gross profit for the quarter increased 39.9 percent to $12.5 million from $8.9 million in the year-ago period. The improvement in gross margin to 20.4 percent from 20 percent reflects improved margins in the Private Label business.
Royalty expense for the current quarter was $1.5 million compared to $295,000 in the same quarter last year. The increase is due to the royalties payable on the celebrity brands, of which there were none payable in the fiscal 2005 first quarter.
Net income for the first quarter of 2006 was $836,000, or $0.03 per diluted share, compared to a net loss of $106,000 or $0.00 per share, in the same quarter of last year.
"We were very pleased to generate strong top line growth in both our Private Brands and Private Label businesses," said Gerard Guez, Chairman and interim CEO of Tarrant Apparel Group.