Sportswear sales decreased by $0.2 million in the quarter to $3.8 million in 2005 from $4.0 million in 2004, while segment profit remained positive, but decreased from $0.3 million in 2004 to $0.2 million in 2005.
Licensed Brands contributed $242,000 of sales in the quarter. The company is currently establishing this segment.
Fashion Fabrics sales in the second quarter of 2005 decreased by $2.0 million to $7.0 million from $9.0 million last year. Of this decrease, $0.5 million can be attributed to the conversion of U.S. sales into Canadian dollars. The balance of the decrease took place to the extent of $0.5 million in Canada and $1.0 million in the U.S.
Outlook
"With the private placement of 52 million common shares along with the re-negotiated credit arrangement soon to be in place, we believe that the Company will now be in a position to pursue opportunities that exist for organizations such as Algo Group that offer apparel and textiles across Canada and the United States," said Mr. Kakon. "We will continue with our strategy of developing stronger and closer relationships with our core customers, seeking out new customers, and enhancing and expanding our product lines."
Canada's leading apparel firm Algo Group is a leading Canadian manufacturer and importer of ladies' fashion apparel, as well as men's, boy's and children's sportswear that is marketed throughout North America. As well, Algo Group designs and imports fashion fabric marketed through North-American apparel manufacturers and retail outlets. Company mission is to be a recognized leader in ladieswear, children's wear, adult sportswear and outerwear and textiles across Canada and the United States.
marketing@alchempro.com
