US: Fifth & Pacific Q4 profit plummets on Juicy brand
- Q4 profit plummets 75% to $57m
- Sales up 8.8% to $487m
- Full-year loss narrows to $74.5m
Net income plummeted 75% to $57m in Q4
US apparel firm Fifth & Pacific has seen its fourth-quarter net profit plummet on the back of declining sales at its struggling Juicy Couture brand and costs related to discontinued operations.
The group said net income plummeted 75% to US$57m for the three months to 29 December, compared to a $229m net profit the year before.
Net sales rose 8.8% to $487m from $447.1m the year before, due to increased sales at its Kate Spade label. This was partially offset by a drop in sales at its Juicy Couture and Adelington Design Group divisions, and includes a $25m decrease in sales related to brands that have been sold or exited.
Direct-to-consumer comparable sales at its Kate Spade and Lucky brands were up 27% and 3% respectively. Juicy Couture saw sales slip 2%.
On a comparable basis, sales increased 13.8%. Gross margin improved to 55.5% against 53.8% the previous year as gross margin expansion of its Kate Spade and Lucky brands partially offset a decline at Juicy Couture.
CEO William McComb said: "2012 brought industry leading growth at Kate Spade and a significant improvement in performance at Lucky Brand. While progress in these two businesses was tempered by a miss in North America at Juicy Couture, we are optimistic that we are correcting the underlying issues at Juicy under the direction of its new CEO, Paul Blum. Our teams are all very focused on delivering their 2013 plans, as we begin the year with the right momentum."
Full-year net loss narrowed to $74.5m, compared to $171.7m the year before. Net sales edged down 0.9% to $1.50bn from the prior year. On a comparable basis, sales rose 11.6%.
US clothing company Fifth & Pacific has admitted its second quarter results were weaker than expected as sales growth slipped at its denim label Lucky Brand....
Fifth & Pacific Companies remains "on track" to hit its fiscal 2013 targets despite recording another large loss in the second quarter of the year, according to its CEO....
Fifth & Pacific Companies is reportedly in late-stage talks to sell its Lucky brand to private equity firm Advent International for an undisclosed sum....
Children's apparel retailer The Gymboree Corporation has appointed Levi Strauss & Co executive Joelle Maher as the company's new chief operating officer....
- SOURCING: Production problems weigh on Pakistan
- What next for smart fabrics and garments?
- Smart sportswear faces mass production challenges
- Frank Henke discusses Adidas sustainability agenda
- Cutting-edge companies focus on consumer needs
- “Unsafe” Bangladesh factory refuses to evacuate
- Cambodia labour abuse claims disputed
- Major Ethiopia textile build experiences delays
- Garment factory tool to improve communication
- RFID adoption among retailers near “tipping point”
- Myanmar's Garment Sector - Opportunities & Challenges in 2015
- Apparel Retail: Top 5 Emerging Markets Industry Guide
- Management briefing: Outlook 2015: Apparel industry issues in the year ahead
- Outdoor performance apparel: peaks, valleys, and green fields
- Global market review of swimwear - forecasts to 2019