US: Hampshire Group returns to profit in Q2
- Q2 profit of US$1.1m, compared to losses of $3.8m
- Sales jumped 48.3% to $26.1m from $17.6m
- Gross margin slipped to 20.4% versus 23.5%
US fashion apparel manufacturer Hampshire Group returned to profit during the second quarter, but said its performance does not reflect the long-term prospects of the business.
The New York-based company today (14 August) said the sales increase was driven by significant volume increases at Hampshire Brands with new licensing arrangements with Dockers and Panama Jack.
Sales at the group's Rio Garment division increased slightly for the three months to 29 June, compared to the same period in the prior year.
"The second quarter results remain poor and do not reflect the anticipated long-term prospects of this business," said CEO Paul Buxbaum.
"Given the long lead time in the apparel business, the company's 2013 purchase requirements are contracted well in advance, and the new management team and I are unable to materially enhance operating results based on the state of the business when we joined in 2013."
During the first half, losses more than halved to $4.2m from losses of $8.7m last year, while sales reached $45.1m, up 13.7% from $39.6m the prior year.
Looking forward, Buxbaum added: "The remainder of 2013 will continue to be a transition year for Hampshire Group's operating performance as we realign our operations to better serve our long term objectives.
"We are restructuring almost every aspect of how the company operates and we expect to see the results of these processes in 2014."
Hampshire Group has said it will report another year of losses and poor results in fiscal 2013 but expects to produce positive cash flow and EBITDA in its next financial year....
US apparel manufacturer Hampshire Group has said it is "disappointed" after reporting a wider year-on-year loss during the third quarter, hurt by lower sales and increased costs....
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