Apparel retailer Tag-It Pacific Inc reports Q1 sales up 28.5%
17 May '05
5 min read
Outlook
Based on what the Company has seen in the market in the last month, including the build-up of our sales and the Company's implementation of new programs, slower than expected start-up of the Talon owned and operated North Carolina facility, ramp-up of the Company's TrimNet customers, and roll-out of the Talon franchise business, the Company has reevaluated and is revising its top line growth expectation for the full year to growth of approximately 25 percent over 2004.
The Company continues to expect gross margins to be in the range previously discussed, which is 26 percent to 28 percent. As a result of its moderated sales growth, the Company is implementing cost-reduction strategies to reduce its SG&A expenses. However, any reductions could be offset by higher legal expenses associated with the Company's litigation with Pro-Fit.
The Company's ability to achieve profitability in the second quarter and to remain consistently profitable for the remainder of the year will depend to a large degree on the foregoing. This revised guidance is based primarily on the Company moving out sales revenues from the North Carolina facility and International Talon business by one quarter and the Company has not factored in growth from any new customers.
Tag-It specializes in the distribution of a full range of trim items to manufacturers of fashion apparel, specialty retailers and mass merchandiser. Tag-It acts as a full service outsourced alon business by one quarter and the Company has not factored in growth from any new customers.
marketing@alchempro.com
