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Hartmarx acquires womens knitwear brand
04 Sep '06
3 min read
Hartmarx Corporation announced that it has acquired the business of Sweater.com Inc, including its "One Girl Who . . ." brand. The business designs and markets high quality women's knitwear, tops and related products to leading specialty stores nationwide and directly through its Sweater.com website.
Homi B. Patel, chairman and chief executive officer of Hartmarx, commented, "This acquisition is another step in our stated strategy of reducing our dependence on men's tailored clothing products marketed through the mainstream department store channel and redeploying these assets in luxury or bridge businesses sold to upscale stores."
"For fiscal 2007, this new acquisition is anticipated to contribute approximately $15 million in sales and be accretive to diluted earnings per share by $.02 - $.03."
Mr. Patel continued, "Fiscal 2006 continues to be an extremely challenging year for us with our performance being adversely affected by the uncertainty, disruption and shipping delays, caused principally by the consolidation and ownership changes in the mainstream department store sector.”
“We do not believe this is a temporary phenomenon which will self-correct over time. Accordingly, we are aggressively pruning those programs that are not contributing sufficient profit margins, streamlining capacities, tightening the supply chain, cutting costs and converting working capital tied up in these programs to cash.”
“We continue to look at other acquisition candidates and to repurchase additional Hartmarx shares pursuant to the previously announced authorization to acquire up to 2 million common shares."
Homi B. Patel, chairman and chief executive officer of Hartmarx, commented, "This acquisition is another step in our stated strategy of reducing our dependence on men's tailored clothing products marketed through the mainstream department store channel and redeploying these assets in luxury or bridge businesses sold to upscale stores."
"For fiscal 2007, this new acquisition is anticipated to contribute approximately $15 million in sales and be accretive to diluted earnings per share by $.02 - $.03."
Mr. Patel continued, "Fiscal 2006 continues to be an extremely challenging year for us with our performance being adversely affected by the uncertainty, disruption and shipping delays, caused principally by the consolidation and ownership changes in the mainstream department store sector.”
“We do not believe this is a temporary phenomenon which will self-correct over time. Accordingly, we are aggressively pruning those programs that are not contributing sufficient profit margins, streamlining capacities, tightening the supply chain, cutting costs and converting working capital tied up in these programs to cash.”
“We continue to look at other acquisition candidates and to repurchase additional Hartmarx shares pursuant to the previously announced authorization to acquire up to 2 million common shares."
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