Tarrant Private Brands & Private Label businesses perk up in 2006
26 Mar '07
3 min read
Tarrant Apparel Group announced financial results for the fourth quarter and year ended December 31, 2006.
Fourth Quarter Results: In the fourth quarter of 2006, net sales increased 15.5% to $57.4 million from $49.7 million reported in the same period last year. The increase was due to higher sales in both the Company's Private Brands and Private Label businesses.
Private Brands sales increased to $12.0 million compared to $9.6 million in the fourth quarter of 2005. The increase in Private Brands was primarily due to increased sales of the Company's American Rag brand. Private Label sales also increased in the quarter to $45.4 million from $40.1 million reported in the same period last year. The increase reflects growth from existing customers and the addition of new customers.
Net income for the fourth quarter of 2006 was $1.7 million, or $0.06 per diluted share, compared to a net loss of $1.5 million, or $0.05 per share in the same quarter of the prior year. Income from operations was $3.3 million compared to loss from operations of $1.1 million in 2005.
Gross profit for the quarter increased 37.5% to $13.7 million from $9.9 million in the year-ago period. The improvement in gross margin to 23.8% from 20.0% reflects an increased contribution from our higher-margin Private Brands business, and improved margins in the Company's Private Label business resulting from greater efficiency in sourcing.
Selling, general, and administrative expenses in the 2006 fourth quarter were $9.7 million compared to $9.5 million in the 2005 fourth quarter. As a percentage of sales, selling, general and administrative expenses declined to 16.9% versus 19.1% for the same period of the prior year.
marketing@alchempro.com
