Hartmarx reaffirms 2007 full-year sales & earnings guidance

31 Mar '07

2 min read

Hartmarx Corporation reported operating results for its first quarter ended February 28, 2007. Sales were $120.0 million in 2007 compared to $144.2 million in 2006. The net loss was $3.4 million or $.09 per diluted share in 2007 compared to net earnings of $2.6 million or $.07 per diluted share in 2006.

Homi B. Patel, chairman and chief executive officer of Hartmarx Corporation, commented, "Our first quarter results reflect the previously announced negative outlook for the first portion of fiscal 2007, resulting from conditions affecting the men's tailored clothing product lines. Despite the poor first quarter operating results, we continue to expect a significant earnings recovery for the full year of 2007 compared to 2006."

"We are maintaining our previously announced full year guidance of revenues in the $585-$600 million range with diluted earnings per share in the range of $.50-$.56. We are starting to realize the benefits from the actions we initiated last year and we expect to return to profitability in the second quarter with significant favorable comparisons to the prior year occurring in the second half of the year."

Mr. Patel continued, "As previously announced, approximately $13 million of Spring advance tailored clothing orders for a major customer have been shifted from the first quarter last year to the second quarter this year. Also, last year's first quarter included $3.9 million of revenues and related earnings applicable to two moderate priced tailored clothing licenses that were not renewed for 2007."

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