• Swings to Q2 net loss of $3.8m
  • Order backlog up 40%
  • Net sales surge 423.5% to $18.1m

US apparel maker Hampshire Group has swung to a second-quarter loss despite posting a significant increase in net sales.

Net loss for the three months to the end of June reached US$3.8m, compared to a net profit of US$3.1m last year.

Loss from operations narrowed to $4m, compared to a $7.2m loss the same period last year. During the quarter, the company's order backlog increased 40% year-on-year to $82.2m.

Meanwhile, net sales surged 423.5% to $18.1m, primarily due to the inclusion of the Rio Garment manufacturing operation which the company acquired during the quarter. This was offset by an $800,000 decline in net sales due to the wind down of the Joe Joseph Abboud licensing deal.

CEO and president Heath Golden said: "Over the past 18 months, we have been aggressively repositioning Hampshire Group to become a profitable, vertically integrated sportswear manufacturer and marketer, moving away from our former business model as an unsustainable, seasonal sweater business."

Golden also said he expects to achieve operating profitability for the second half of the year, as well as for the 2013 full-year.