Hampshire Q2 net sales grows manifold

Hampshire Group announced its results for the second quarter

ended June 30, 2012. Net sales for the second quarter of 2012 were 18.1 million dollars (Rs 100 crores), as compared with 3.5 million dollars (Rs 19 crores) for the second quarter of 2011. The 14.6 million dollars (Rs 81 crores) improvement in net sales was primarily due to the inclusion of Rio Garment’s net sales of 15.4 million dollars (Rs 85 crores) for the quarter which was partially offset by a 0.8 million dollars (Rs 4 crore) decline in Hampshire Brands net sales due to the wind down of the JOE Joseph Abboud licensing agreement. Gross profit for the second quarter was 4.3 million dollars (Rs 23 crore) versus a gross loss of less than 0.1 million dollars (Rs 55 lakh) a year ago.

Selling, general and administrative expenses were 8.3 million dollars (Rs 46 crores) for the second quarter of 2012, an increase of 2.6 million dollars (Rs 14 crores) over the previous year as a result of the inclusion of Rio Garment, which was not part of the company in last year’s second quarter. SG&A as a percent of sales declined to 46 percent versus 172 percent a year ago. The company announced a cost savings plan during this year’s second quarter, which is expected to provide annualized savings of approximately 1 million dollars (Rs 5 crore) in compensation costs.

The company reported a loss from continuing operations per share of 0.56 dollars (Rs 31) for the second quarter of 2012, an improvement compared to a loss per share of 1.30 dollars (Rs 72) for the same period last year. The company ended the quarter with 13.1 million dollars (Rs 72 crores) in cash, compared with 25.8 million dollars (Rs 143 crores) at December 31, 2011.

Hampshire Group along with its wholly-owned subsidiaries, Hampshire Brands, Rio Garment S.A. and scott james, LLC, is a provider of fashion apparel across a broad range of product categories, channels of distribution and price points. The company specializes in designing and marketing men’s sportswear to department stores, chain stores and mass market retailers under licensed brands, its own proprietary brands and the private labels of its customers. The company operates a Honduras-based apparel manufacturer, designing, sourcing and manufacturing knit tops for men, women and children. It also offers a full sportswear collection for men through the scott james brand that is sold primarily at upscale department and specialty stores and online.