Home / Knowledge / News / Apparel/Garments / Operating margins continue to expand - G&K

Operating margins continue to expand - G&K

31
Oct '07
G&K Services Inc reported record revenue for the first quarter ended September 29, 2007 of $243.8 million, a 9.3 percent increase from previous year revenue of $223.1 million. Organic rental growth, revenue from acquisitions and strong direct sale growth drove the increase over the prior-year.

First quarter earnings per diluted share exceeded expectations and rose to $0.58, a 34.9 percent increase from $0.43 per diluted share during the prior-year period. The increase in earnings compared to the prior-year was driven by significantly higher operating income margin as a result of the company's ongoing strategic initiative.

"We're extremely pleased to deliver strong first quarter performance," said Richard Marcantonio, chairman and chief executive officer.

"As expected, record revenue was driven by strong growth from both our rental and direct sale businesses in addition to revenue from acquisitions.

It is also worth noting that we achieved record new account sales during the quarter, driven by improved sales productivity and the signing of a number of new national account customers, all of which will contribute to future revenue growth.

Of equal importance, we drove significant operating margin improvement while continuing to execute on a number of key strategic initiatives to drive long-term revenue and earnings growth."

Income Statement Review:
First quarter revenue from G&K's rental business increased to $226.1million, up 9.1 percent over the prior-year period. As expected, the company's organic rental growth rate was approximately 3.5 percent in the quarter. Direct sale revenue, driven almost solely by organic growth, increased to $17.7 million, up 11.9 percent over the prior-year period.


Must ReadView All

Pic: Shutterstock

Textiles | On 27th Oct 2021

US reaches multi-country agreement on Digital Services Taxes

The US has reached an agreement with Austria, France, Italy, Spain...

A portion of globe showing location of Myanmar in Asia. Pic: commons.wikimedia.org/ Valegos Mangenuit

Textiles | On 27th Oct 2021

Myanmar heading towards economic crisis

The southeast Asian nation of Myanmar, which saw military junta...

Pic: Shutterstock/I Love Coffee dot Today

Apparel/Garments | On 27th Oct 2021

Cambodia’s garment exports up by 11.4% in Jan-Sept 2021

Cambodia exported $8.2417 billion worth garments between January and...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Luxury is not just about high prices but ability to create desire

Textile Industry, Head honchos

Textile Industry
Head honchos

Uniform designing is a numbers game

Textile Industry, Head honchos

Textile Industry
Head honchos

Multi-functional garments will be next big thing

Chini Chouhan,

Chini Chouhan

Founded by Chini Chouhan, her eponymous brand specialises in women's...

Dhirubhai & Arvind Shah,

Dhirubhai & Arvind Shah

It supplies synthetic fabrics to top international brands like M&S,...

Seema Mishra,

Seema Mishra

Set up in January 2020 by <b>Seema Mishra</b>, the Kasrawad Art Cluster...

Madison Maxey, Loomia

Madison Maxey
Loomia

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

Wolfgang Plasser, Lenzing AG

Wolfgang Plasser
Lenzing AG

The Lenzing Group is an international company headquartered in Austria...

Sven Ghyselinck, Devan Chemical

Sven Ghyselinck
Devan Chemical

Headquartered in Belgium and with offices in the United Kingdom, Portugal...

Shalini Sharma & Shweta Pundir Sharma, Six Yard Story

Shalini Sharma & Shweta Pundir Sharma
Six Yard Story

Six Yard Story is a premium artisanal brand with a focus to bring handloom ...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

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

Sunita Shanker, Label Sunita Shanker

Sunita Shanker
Label Sunita Shanker

Inspired by the rich traditional crafts of India, Sunita Shanker’s work is ...

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


October 2021

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


Advanced Search