High quality apparel & accessory marketer Innovo Group Inc announced financial results for the first quarter ended February 25, 2006.
For the quarter ended February 25, 2006, net sales were $21.9 million compared to net sales of $23.1 million in the prior year period. The company reported a loss from continuing operations of $3.7 million, or $0.11 per share compared to a loss from continuing operations of $616,000, or $0.02 per share in the corresponding period a year ago.
Of the $3.7 million loss from continuing operations during the first quarter, the company took a write down of approximately $1.1 million related to existing indie inventory and future inventory purchase commitments, experienced higher than expected returns and allowances for its indie products, and also took a charge of approximately $613,000 related to severance benefits, $400,000 of which was a cash charge. Excluding the $1.7 million in charges highlighted above, the company would have reported a loss from continuing operations of $1.9 million, or $0.06 per share.
First quarter total net sales were $21.9 million compared to $23.1 million a year ago, a decrease of 5 percent. During the period, net sales of the Company's Joe's branded apparel increased 92 percent to $10.1 million compared to $5.2 million in the prior year period. This included $2.6 million of planned clearance activity originally scheduled for the fourth quarter of fiscal 2005. Net sales of the Company's otherbranded apparel decreased to $340,000 during the first quarter versus $867,000 a year ago, while net sales of the Company's private label apparel for the first quarter decreased to $11.5 million compared to $17.0 million in the prior year period.
marketing@alchempro.com
