Home / Knowledge / News / Apparel/Garments / G&K Services reports 2007 Q1 results

G&K Services reports 2007 Q1 results

31
Oct '06
G&K Services Inc reported revenue for the first quarter ended September 30, 2006 of $223.1 million, a 7.3 percent increase from prior-year revenue of $207.9 million.

Continued increases in rental organic growth and strong direct sale organic growth drove the increase in revenue compared to the prior-year.

Earnings per diluted share totaled $0.43 for the quarter compared to $0.49 during the prior-year quarter. As expected, first quarter earnings reflect higher rental gross margins offset by the increased selling, general and administrative expenses associated with investments in sales, marketing and technology initiatives as compared to the prior-year.

Income Statement Review
First quarter revenue from G&K's rental business increased to $207.3 million, up 6.8 percent over the prior-year period. The company's organic industrial rental growth rate was approximately 5.0 percent in the first quarter, an improvement of 50 basis points compared to the fourth quarter of fiscal 2006 and 200 basis points compared to the prior-year period.

Direct sale revenue, driven almost entirely by organic growth, increased to $15.8 million, up 14.0 percent over the prior-year quarter.

The organic revenue growth rates are calculated using industrial rental and direct sale revenue, respectively, adjusted for foreign currency exchange rate differences and revenue from newly acquired locations compared to prior-period results.

Gross margin from rental operations for the quarter was 36.5 percent, an increase of 70 basis points compared to 35.8 percent in the prior-year period.


Must ReadView All

Pic:  TonelsonProductions / Shutterstock.com

Apparel/Garments | On 16th Apr 2021

CPTPP boosts Vietnam's exports, pandemic a mild dampener

Vietnam's exports to its partners in the Comprehensive and...

Pic: Smartwool

Apparel/Garments | On 16th Apr 2021

US merino wool apparel maker Smartwool to go 100% circular by 2030

Smartwool, a Denver, US-based maker of merino wool apparel for active ...

Pic: Steve Madden

Apparel/Garments | On 16th Apr 2021

US company Steve Madden acquires remaining share of European JV

Steve Madden Ltd, a leading designer and marketer of fashion-forward...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Consumer sentiment will be conservative after lockdown

Textile Industry, Head honchos

Textile Industry
Head honchos

Increased need for online fitting solutions as retailers shift to...

International apparel brands, Head honchos

International apparel brands
Head honchos

Launched first collection at onset of Covid

Ritu Oberoi,

Ritu Oberoi

Mumbai-based Forsarees is a socially driven business enterprise, working...

Vikram Juneja,

Vikram Juneja

Jaquard is a training institute providing a highly specialised training...

Ismail Ajani,

Ismail Ajani

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

Suresh Patel, Non Woven Federation of India

Suresh Patel
Non Woven Federation of India

The Non Woven Federation of India (NWFI), representing the regional...

Madison Maxey, Loomia

Madison Maxey
Loomia

Loomia designs and manufactures soft circuit systems that can be produced...

Dave Rousse, INDA

Dave Rousse
INDA

INDA, a global association of the nonwoven fabrics industry, has been...

Niti Singhal, Twee In One

Niti Singhal
Twee In One

Best known for convertible clothing, Indian brand Twee In One by designer...

Suman Nathwani, Suman Nathwani

Suman Nathwani
Suman Nathwani

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

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Samatvam, a womenswear brand that blends age-old craftsmanship with modern ...

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


April 2021

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


Advanced Search