ISRAEL: Tefron swings to Q4 loss on Hi-Tex problems
Seamless intimate apparel and activewear maker Tefron Ltd has swung to a fourth quarter loss, blaming the weak US dollar and manufacturing problems in its Hi-Tex division.
Net loss for the quarter was $2.4m, or $0.11 per share, compared with net income of $4.7m, or $0.22 per share, in the same period last year.
Fourth quarter gross margin dropped to 5.4% from 22.2% in last year's quarter on exchange rate fluctuations, and a higher sales of cut and sew garment which have a lower profitability than seamless products.
The company also said it faced continuing manufacturing challenges in its Hi-Tex division which makes "various new and complex products" ordered in short production runs.
For the full year, net income was $483,000, or $0.02 per share, compared with $18.4m, or $0.89 per share, in 2006.
Revenues were $158.6m, down 15.7% on the previous year's $188.1m. Full year gross margin fell to 12.3 from 22.8%.
Mr Yos Shiran, chief executive officer, said the company expects tough conditions "to continue into the early part of 2008."
He added: "In the short term, we will focus our efforts on solving the manufacturing challenges in our Hi-Tex division and aim to reduce operational costs. At the same time, we will continue our efforts to broaden our customer base."
On the upside, he said active-wear revenues are growing and first quarter sales look strong.
Help test our new apparel sourcing tool.
As the start of this summer's Beijing Olympics attracts around four billion onlookers from over 200 countries, leading brands are tussling for the inside lane and marketing gold. Joe Ayling reports on...
The following is a general roundup of US apparel and shoe chains' July 2008 sales results. The list will be updated as new results become available....
Nike has opened its first Nike Sportswear retail store where customers can access the best of its collection in one location, as well as a new service that lets them create customised footwear product...
Limited Brands Inc, operator of the Victoria's Secret, Pink and La Senza chains, has posted a 61.4% drop in second quarter profit, but says it is pleased with its performance "in this challenging econ...
Global sporting goods maker Nike Inc has promoted Eric Sprunk to the new role of vice president for product....
Seamless intimate apparel, active wear maker Tefron Ltd today (14 August) has swung to a second quarter loss, despite higher revenues across all product lines, as it continues to be hampered by high c...
Women's retailer AnnTaylor Stores Corporation has announced the appointment of Christine M Beauchamp to president of Ann Taylor Stores, effective immediately....
Chinese sportswear brand Li Ning saw its share price bolstered by a star appearance from its founder during the Olympics opening ceremony in Beijing....
- US apparel sector braces for potential cost hikes
- Vietnam grows share of US apparel imports in 2016
- Trade Tracker – Trump's first weeks, Brexit agenda
- Key trade issues facing US textiles and apparel
- Does a hard Brexit mean hard times for UK fashion?
- Bangladesh "high threat" for terrorist activity
- VF Corp sees Q4 and FY earnings tumble
- Sales at US clothing retailers jumped in January
- Ralph Lauren new execs to support Way Forward Plan
- US Q4 in brief – VF Corp, Kate Spade, Rocky Brands
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Outdoor performance apparel 2016: A broader perspective
- Technical textile markets: product developments and innovations, December 2016
- Global market review of lingerie – forecasts to 2022
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar