Talon swings to Q4 loss on lower zipper sales
- Q4 loss of $316,757 versus $7.5m profit
- Sales down 14% to $10.3m
- Weighed down by zipper sales decline
Apparel fastener, zipper and trim supplier Talon International swung to a net loss in the fourth quarter, weighed down by a double-digit decline in zipper sales.
The company's net loss amounted to US$316,757 for the three months to 31 December 2014, compared to a profit of $7.5m in the same period of the prior year.
Sales fell 14% to $10.3m from $11.9m in the prior year. Zipper sales declined 23.2% to $4.3m from $5.6m in 2013, while trim sales were $381,000 lower than the prior year.
During the full year, net income amounted to $572,000, down on $9.7m the year before, which included a $7.5m one-time benefit from the adjustment of deferred income taxes.
Sales dropped 6% to $49.3m from $52.4m in 2013, weighed down by a 14.1% decline in zipper sales to $24.7m as retailers pulled-back orders and worked off inventory after a slow beginning in 2014, and foreign competition for the mass merchandiser and teen retailer business increased in Asia. Trim sales, meanwhile, fell 3.7% to $24.5m.
Nonetheless CEO Lonnie Schnell said: "Talon is positioned to benefit as retail inventories are rebalanced in 2015. Our focus on specialty/premium retailers that value our products to support their high-image brands, will further reduce our exposure to the mass merchandising and teen retailer.
"This focus, together with the potential growth from our TekFit stretch technology, give us great optimism for 2015 and beyond.”
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