• FY loss widened to $9.69m
  • Sales fell 18.6% to $134.5m
  • Expects inflation to continue 

Falling women's wear sales and lower selling prices have contributed to a wider full-year losses at clothing maker Hampshire Group Limited.

"Operating results in 2010 were adversely affected by a highly promotional environment and a shift in our customer's focus towards their private and exclusive brands," said president and CEO, Heath Golden.

"We expect the inflation that the industry is currently experiencing in raw materials, labour and transportation to continue for the foreseeable future.

"As a result, we remain steadfast in our efforts to broaden our customer base, expand our sales channels, manage and reduce operating costs and eliminate the non-operational costs that we incurred over the last few years."

Loss for the year to 31 December widened to $9.69m or $1.74 per share, compared to a loss of $6.05m or $1.10 per share the year before. Sales fell 18.6% to $134.5m from $165.2m.

For the fourth quarter, sales tumbled 27.7% to $46.5m, the company said.

Hampshire Group makes women's and men's sweaters, wovens and knits for retailers such as JC Penney, Kohl's, Macy's, Belk's and Dillard's. As well as its own brands, the company also licenses the Geoffrey Beene and Dockers labels for men's sweaters.