Hampshire Group Limited announced that it has filed its quarterly report on Form 10-Q for the period ended September 29, 2007 with the United States Securities and Exchange Commission. This press release should be read in conjunction with the filed quarterly report referred to in this release and the annual report on Form 10-K for the fiscal year ended December 31, 2006 filed on September 14, 2007.
Results for the Third Quarter and Year To Date 2007: Net sales for the three months ended September 29, 2007 were $103.6 million compared to $112.6 million for the same period of the prior year. The $9.0 million decline in net sales was primarily attributable to a retail environment that resulted in customers delaying deliveries to the fourth quarter that historically shipped during the third quarter and the discontinuance of lower margin products during 2007.
Additionally, the closing of Marisa Christina during 2007 resulted in decreased volume in the third quarter compared to the same period last year. Net sales for the nine months ended September 29, 2007 were $203.8 million compared to $229.6 million for the same period of the prior year.
The $25.8 million decrease in the Company's net sales was driven by the decline in third quarter sales combined with lower first quarter sales volume in our mass merchant division and our women's related separates divisions not offset by shipments in subsequent periods. Offsetting the sales volume decline was a 5.4% increase in average selling price.
Income from operations for the three months ended September 29, 2007 was $5.4 million compared to $4.8 million for the same period of the prior year. Income from operations for the three months ended September 29, 2007 and September 30, 2006 included expenses associated with the Audit Committee investigation of $1.1 million and $4.0 million, respectively.
The loss from operations for the nine months ended September 29, 2007 was $8.8 million compared to $2.9 million for the same period of the prior year. The loss from operations for the nine months ended September 29, 2007 and September 30, 2006 included expenses associated with the Audit Committee investigation of $4.9 million and $4.5 million, respectively.
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