Sweater maker Hampshire Group declares Q2 results

August 06, 2005 - United States Of America

South Carolina based largest supplier of apparel, Hampshire Group Limited announced results for the second quarter and six months ended July 2, 2005. Net sales during the quarter were $38,636,000 compared with $26,252,000 for the same period during the prior year, and net income was $984,000, or $0.12 per diluted share, compared with a net loss of $1,694,000, or $0.21 per diluted share in the second quarter of 2004.

The income during the second quarter of 2005 included non-recurring income of $2,755,000 ($4,622,000 less provision for taxes of $1,867,000) relating to a settlement with two former employees of claims by the Company arising in respect to improper payments by a former vendor of the Company to the former employees. The non-recurring income, after provision for income taxes, contributed $0.33 to net income per diluted share during the second quarter of 2005.

During the first six months of 2005, net sales were $96,713,000 compared with $80,649,000 for the same during the prior year, and the net income was $1,732,000 or $0.21 per diluted share compared with a net loss of $1,547,000 or $0.19 per fully diluted share during the first six months of 2004. The non-recurring income, after provision for income taxes, contributed $0.33 to net income per diluted share in the six months ended July 2, 2005.

Continuing the trend of the first quarter, the improved sales are primarily attributable to the related separates business. Because of the seasonality of the sweater business, which accounts for well over sixty percent of the Company's annual sales, results in the first half are not indicative of results for the full year.

Commenting on the results, Ludwig Kuttner, Chairman and Chief Executive Officer, stated, "The sweater business continues to be highly competitive and very difficult. They are pleased to have the increased performance provided by their related separates business, which has helped us report good comparative results for the first six months. They are expecting continued challenges during the balance of the year, particularly in women's sweaters."

Hampshire Group Limited is a diversified apparel company, believed to be the largest supplier of women's and men's sweaters in North America and a leading supplier of women's related separates.