US: Blue Holdings Q3 hit by inventory reduction
Blue Holdings has reported a fall in third quarter sales and a widening of its net loss compared to the same period last year.
"Our third quarter results reflect our ongoing turnaround efforts to stabilize the business and place the Company back on the growth curve for 2008 and beyond," said Glenn Palmer, CEO of the jean company. "During the quarter we significantly reduced our excess inventory by selling a substantial amount of off-price merchandise. While this adversely impacted our third quarter sales and gross margin, we believe that it best positions the company for improved profitability long-term. It remains a top priority for the company to enter 2008 from a clean inventory position."
Net sales for the third quarter of 2007 were US$9.5m, compared to $14.6m reported in the prior year period.
Net loss for the quarter was approximately $3.9m, versus a net loss of $0.4m for the third quarter of 2006.
Palmer continued: "We view 2007 largely as a transitional year for Blue Holdings as we continue to make significant changes to streamline the business around our core brands and position Blue Holdings for sustainable growth in 2008. We are optimistic about our long-term prospects, yet mindful of the challenges facing the apparel industry."
The company said it was introducing new guidance and expects fourth quarter 2007 revenues of approximately $7.5m, and net income to be breakeven.
The company is also introducing new guidance for the first quarter of 2008, and expects revenues in be in the range of $7.5m to $8.5m and to be profitable.
High-end jeans operator Blue Holdings recorded a net loss of US$5.6m in 2007, the company confirmed - but is already predicting a return to profitability in 2008....
Fashion operator Blue Holdings has appointed Burt Damsky as its new president of sales and Alicia Gabaldon as its new VP of merchandising....
Apparel company Blue Holdings posted a net loss of approximately $5.6m, versus a loss of $5.4m in 2006, in a preliminary statement that forecast a more streamlined and profitable business next year....
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