• Linkdin
Maximize your media exposure with Fibre2Fashion's single PR package  |   Know More

Swimwear sales drive Tefron's quarterly revenues

16 May '08
3 min read

As discussed last quarter, these challenges are mainly due to the learning curve required for the manufacture of various new and complex products, which are technologically advanced and have been ordered in short production runs for a larger number of apparel categories.

In addition, the significant devaluation of the US Dollar versus the New Israeli Shekel in the quarter increased the US Dollar value of the New Israeli Shekel denominated liabilities and accordingly resulted in increased financial expenses.

Mr. Yos Shiran, Chief Executive Officer of Tefron, commented, "While we are pleased with our increase in revenues, we still presented a net loss, mainly due to the weak US dollar against the shekel and manufacturing hurdles at our Hi-Tex division.

We are currently focusing our efforts on overcoming these hurdles and reducing our operational costs. In the next few months, we aim to finalize the operational plan that we discussed in the prior quarter, and we expect to continue implementing the plan in the second half of the year. In the coming quarters, we hope to share with you positive news with regard to the implementation of this plan."

Mr. Shiran continued, "On the positive side, we are happy to announce a significant new customer: Maidenfrom. We expect to record sales to Maidenform in the next few months for orders already received.

Additionally, we have seen two quarters of sequential growth in our active-wear sales, mainly due to increased orders from Nike for their 'Next Generation' products. We are looking for this trend of growth in our active-wear sales to continue into the second quarter of 2008, driving a growth in our overall sales."

Mr. Shiran concluded, "Based on our current orders, we currently expect second quarter 2008 revenues of around $45 million, driven by continued growth in active-wear sales while taking into account the seasonal decline in second quarter swimwear sales.

However, we believe that the weakness of the US Dollar, in addition to the manufacturing hurdles of our Hi-Tex division, will continue to negatively affect our profitability, and accordingly we expect to show an operating loss for the second quarter."

Tefron Ltd

Leave your Comments

Esteemed Clients

TÜYAP IHTISAS FUARLARI A.S.
Tradewind International Servicing
Thermore (Far East) Ltd.
The LYCRA Company Singapore  Pte. Ltd
Thai Trade Center
Thai Acrylic Fibre Company Limited
TEXVALLEY MARKET LIMITED
TESTEX AG, Swiss Textile Testing Institute
Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)
Taiwan Textile Federation (TTF)
SUZHOU TUE HI-TECH NONWOVEN MACHINERY CO.,LTD
Stahl Holdings B.V.,
Advanced Search