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Branded products revenues drive Ashworth's Q3 sales
02 Sep '05
5 min read
Lifestyle apparel firm Ashworth Inc announced financial results for the third quarter ended July 31, 2005.
- Company Grows in Four of Seven Channels/Reports Success in Cross Channel Selling
- Company Reports Quarterly Loss of $3.4 Million Primarily Due to:
- Reserves for liquidation of inventory buildup,
- Higher than expected markdown allowances, and
- Inefficiencies at the Company's U.S. Embroidery and Distribution Center
- Company Lowers Fiscal 2005 Guidance and Issues Preliminary
Fiscal 2006 Revenue Guidance
During the quarter, as compared to a year ago, the Company experienced revenue growth in its international golf channel, its corporate distribution channel, its Gekko brands headwear lines and its Company-owned outlet stores. Revenues declined in the Company's domestic golf channel due to continued softness in the US golf industry.
Revenues in the retail distribution channel were adversely impacted by higher than expected markdown allowances due to a highly promotional retail environment as well as lower than anticipated product performance at retail.
The Company experienced a net loss in the quarter due to increased markdown allowances from lower than anticipated full priced sell-through of the Ashworth and Callaway Golf apparel lines, an increase in inventory reserves due to a significant build up of excess domestic inventory in the third quarter, inefficiencies at the Company's US Embroidery and Distribution Center (EDC) and increases in SG&A expenses from higher selling and promotional costs and higher than anticipated Sarbanes-Oxley compliance expenses.
- Company Grows in Four of Seven Channels/Reports Success in Cross Channel Selling
- Company Reports Quarterly Loss of $3.4 Million Primarily Due to:
- Reserves for liquidation of inventory buildup,
- Higher than expected markdown allowances, and
- Inefficiencies at the Company's U.S. Embroidery and Distribution Center
- Company Lowers Fiscal 2005 Guidance and Issues Preliminary
Fiscal 2006 Revenue Guidance
During the quarter, as compared to a year ago, the Company experienced revenue growth in its international golf channel, its corporate distribution channel, its Gekko brands headwear lines and its Company-owned outlet stores. Revenues declined in the Company's domestic golf channel due to continued softness in the US golf industry.
Revenues in the retail distribution channel were adversely impacted by higher than expected markdown allowances due to a highly promotional retail environment as well as lower than anticipated product performance at retail.
The Company experienced a net loss in the quarter due to increased markdown allowances from lower than anticipated full priced sell-through of the Ashworth and Callaway Golf apparel lines, an increase in inventory reserves due to a significant build up of excess domestic inventory in the third quarter, inefficiencies at the Company's US Embroidery and Distribution Center (EDC) and increases in SG&A expenses from higher selling and promotional costs and higher than anticipated Sarbanes-Oxley compliance expenses.
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