Hartmarx provides 2007 revenue & earnings guidance

22 Dec '06

3 min read

Hartmarx Corporation provided revenue and earnings guidance for its fiscal year ending November 30, 2007, an update on the previously announced actions to curtail or discontinue certain moderate priced product lines in its Men's Apparel Group segment and announced an acquisition, a new international license and new product initiatives for 2007.

Homi B. Patel, chairman and chief executive officer of Hartmarx, commented, "We have taken additional steps during the past few months to further reduce our dependence on, and investment in, the mainstream department store channel and to more fully position the Company in the luxury and upper- end price points sold in upscale retail stores.

Regarding 2007, we estimate revenues in the range of $585 - $600 million, which reflect the anticipated reduction in moderate priced brands marketed principally to mainstream department stores to under 15% of consolidated sales compared to 19% in 2006 and 27% in 2005. We estimate 2007 diluted earnings per share in the range of $.50 - $.56 from improved gross margins applicable to both new and legacy businesses on slightly lower sales compared to 2006."

Mr. Patel continued, "The previously announced closing of a fabric cutting shop and a pant sewing facility will be completed by the end of December. We have taken additional actions to close completely a domestic tailored clothing coat facility by calendar year-end, affecting 140 workers, resulting in one- time charges for severance and non-cash facility impairment aggregating approximately $1.2 million in the fourth quarter."

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