Tarrant Apparel Group declares Q2 fiscal results

05 Aug '05

5 min read

Los Angeles based Casual and moderately priced apparel seller Tarrant Apparel Group announced financial results for the second quarter and six months ended June 30, 2005.

Second Quarter Highlights

- Net sales for the second quarter grew 31 percent with Private Brands sales up 143 percent to $11.5 million and Private Label sales up 15 percent to $39 million.

- Gross margin in the current period improved approximately 900 basis points to 23 percent compared to 14 percent in the second quarter last year.

- The Company generated a $0.03 per share profit in the second quarter compared to a substantial net loss last year.

- The first shipments of the JS by Jessica Simpson line occurred in June,demonstrating the Company's continued progress in growing the higher margin Private Brands division.

Second Quarter Results

Net sales increased 31 percent to $50.5 million for the second quarter of 2005 from $38.5 million last year. Primarily the Company's Private Brands business, which contributed $11.5 million in the current period compared drove the increase to $4.7 million in the second quarter last year. In addition, the Company's Private Label business increased 15 percent to $39 million in the second quarter of 2005 versus $33.8 million last year Gross profit increased 118 percent to $11.5 million in the second quarter of 2005 from $5.3 million in the same period last year.

The increased contribution from the higher-margin Private Brands business combined with improved Private Label margins resulted in a gross margin of 23 percent for the second quarter of 2005 versus 14 percent in the year ago period. Selling, general and administrative expenses decreased to $9.4 million in the current period from $11.7 million in the comparable period last year. The 2004 selling, general, and administrative expenses included $3.3 million of depreciation expense related to the Company's Mexico facilities that was not incurred in 2005 due to the sale of the facilities in November 2004.

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