People's Liberation Q1 net sales up 21%, gross margin rise 44.5%
17 May '07
4 min read
Comparing the first quarter of 2007 to the fourth quarter of 2006, operating costs increased approximately $200,000 from $2.5 million in the fourth quarter of 2006 primarily related to additional tradeshows in the period, and professional fees related to the year end audit.
Net loss for the first quarter of 2007 was approximately $1.0 million. This compares with a net loss of $293,000 in the first quarter of 2006 and a net loss of $295,000 in the fourth quarter of 2006.
Highlights of the quarter included: •The refinement of the Company's international expansion strategy for the People's Liberation and William Rast brands with the naming of Andreas Kurz (through his corporation, Akari Enterprises) as a consultant to spearhead the Company's international distribution expansion and manage existing relationships in Europe and the rest of the world. •Effective April 1, 2007, the outsourcing of all of the Company's finished goods shipping, receiving and warehousing functions. •Negotiation of a lease for an Atlanta showroom with a projected opening date of June 1, 2007. •The implementation of a new enterprise resource planning system that provides a centralized system for business operations, inventory, finance, pre-production, customer service, design and production.
Chairman and Chief Executive Officer, Daniel Guez, said, “We continue to focus on our two core brands, People's Liberation and William Rast, and we are making good progress in expanding brand awareness and market penetration at the domestic retail level as well as in other parts of the world.
In order to achieve our goal of profitability in the second half of the year, we are focusing on those areas that hold the most potential for growth and allow us to leverage our resources most effectively. As a result, our product mix continues to evolve and this quarter we made a significant strategic decision to push forward with the on-going development and marketing of the William Rast Men's lifestyle collection, while turning our focus back to our core denim products for both William Rast and People's Liberation.
“Also promising is the positive order trend we are seeing in the second quarter of 2007. Based on the streamlining of our product offering, the renewed focus on the core denim products that have supported our growth to date, as well as expectations for seasonally stronger back-to-school and holiday sales, we believe we can deliver on our commitment of profitability in the second half of 2007,” stated Guez.
marketing@alchempro.com
