Tarrant Apparel Group a design and sourcing company for private label and private brand casual apparel announced financial results for the first quarter ended March 31, 2007.
The Company reported net sales of $56.1 million, compared to $61.3 million in the year earlier period. The decrease was due to a decline in sales of the Company's Private Brands business.
Private Brands sales decreased to $7.9 million compared to $19.2 million in the first quarter of 2006. The decrease in Private Brands was due to the absence of sales from Alain Weiz, Jessica Simpson and House of Dereon brands in the first quarter of 2007, partially offset by an increase in sales of American Rag label.
Private Label sales increased in the quarter to $48.2 million from $42.1 million reported in the same period last year. The increase reflects higher sales to the existing customer base.
Gross profit for the first quarter of 2007 was $12.3 million compared to $12.5 million in the first quarter of 2006. Gross profit declined due to lower overall sales.
The improvement in gross margin to 22.0% from 20.4% was the result of a change in the mix of sales due to the absence of sales from Jessica Simpson and House of Dereon labels and greater efficiency in sourcing. Selling, general, and administrative expenses in the 2007 first quarter were $9.9 million compared to $9.4 million in the 2006 first quarter. As a percentage of sales, selling, general and administrative expenses increased to 17.7% versus 15.3% for the same period of the prior year.
marketing@alchempro.com
