News Flash

HAMP announces results for 12-months ended Dec 31

17 Mar '08

4 min read

As disclosed in previous filings, the Company sold certain non-core specialty store assets of Marisa Christina and David Brooks in November 2007. The results of these divisions have been classified as discontinued operations and excluded from our results from operations discussed in this release and in our 2007 Form 10-K.

Net sales from discontinued operations for the years ended December 31, 2007 and 2006 were $11.7 million and $18.0 million, respectively. The loss from discontinued operations, net of taxes for the years ended December 31, 2007 and 2006 were $2.4 million and $822,000, respectively.

Basic and diluted earnings per share from continuing operations for the year ended December 31, 2007 and 2006 was $0.31 and $0.42, respectively. Basic and diluted earnings per share based on net income for the year ended December 31, 2007 and 2006 was $0.00 and $0.55, respectively.

At December 31, 2007, cash and short term investments totaled $48.4 million compared with $70.2 million at December 31, 2006. The majority of the decrease in cash was due to a build up in receivables at the end of 2007 that were collected in early 2008. The Company's working capital was $96.9 million at December 31, 2007 compared with $88.0 million at December 31, 2006. In addition, total outstanding debt was $74,000 and $61,000 at December 31, 2007 and 2006, respectively.

Michael Culang, interim Chief Executive Officer, stated: "2007 was a challenging year for our industry. Hampshire was not immune from the effects of sluggish sales at retail, the resultant markdowns by our retail partners to draw consumers to their doors, and the overall economy in general.

However, we have continued to implement marketing and operational strategies at a steady pace, building a solid foundation in all aspects of our Company to ensure that we are configured to maintain and grow our market share in the sectors critical to our strategy.

Our efforts include building our 'better' brands, including Spring + Mercer and classification labels of Joseph Abboud, the consolidation of our women's divisions to recognize synergies, our continued investment in design, both in human resources and technical support, and the continuing efforts to make our moderate brands more nimble and fashion forward.

These efforts should prove to favorably impact our effort to garner greater market share both in the moderate sector as well as in the 'better' tier, which we deem a significant opportunity for Hampshire."

Hampshire Group Limited

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