Tarrant Private Brands & Private Label businesses perk up in 2006
26 Mar '07
3 min read
Royalty expense for the fourth quarter was $716,000 compared to $1.5 million in the same quarter of 2005. The fourth quarter of 2005 included a write-off of a $1.2 million prepaid minimum royalty relating to the House of Dereon by Tina Knowles brand, which prepaid royalty was expensed in its entirety upon termination of the Company's licensing contract in March 2006.
2006 Full Year Results: Net sales for fiscal 2006 were $232.4 million, which exceeded the higher end of the Company's guidance of $230 million. The net sales increased 8.3% compared to net sales of $214.6 million in fiscal 2005. The increase in net sales was primarily due to addition of new customers to our Private Label business. Private Label sales in 2006 were $181.2 million compared to $159.6 million in 2005. Private Brands sales were $51.2 million in 2006 compared to $55.0 million in 2005.
Gross profit for the year increased 12.8% to $50.6 million from $44.9 million in 2005. Gross margin improved to 21.8% from 20.9%. Selling, general and administrative expenses were $37.9 million compared to $37.6 million in 2005. As a percentage of sales, sales, general and administrative expenses declined to 16.3% from 17.5% in 2005.
marketing@alchempro.com
