Apparel retailer Innovo appoints CEO, sees loss for 4Q
18 Jan '06
3 min read
However, the company's branded apparel sales missed projections by $3.1 million, as some planned clearance activity for the fourth quarter was pushed into the first quarter of fiscal 2006, while private label sales exceeded previous projections by $3.7 million.
Innovo reported it anticipates a net loss from continuing operations for the fourth quarter of approximately $5.1 to $6.1 million and approximately $3.8 to $4.8 million for the full year.
Approximately $700,000 of the expected shortfall is attributable to the sales mix shift, while the remainder is due to charges associated with a write-down of excess Joe's and indie™ inventory.
Presently, the company believes that it is likely to report further charges in the first half of fiscal 2006 that may be associated with exploring strategic alternatives. Given the uncertain quarterly timing of the charges and the lack of visibility on near-term revenue and expense levels, it has temporarily suspended any further earnings guidance.
Innovo Group Inc, through its operating subsidiaries Innovo Azteca Apparel, Inc and Joe's Jeans, is a sales and marketing organization designing and selling apparel products to the retail and premium markets. It produces products under license agreements and other agreements for private label and branded products.
The company's apparel products consist of men's and women's denim and denim-related apparel products, including, women's high-end denim jeans and knit shirts featuring the Joe's Jeans® and indie™ brands.
marketing@alchempro.com
