Quality Apparel seller Nitches Inc announced results for its fiscal year ended August 31, 2005. Net sales were $26.3 million versus $32.2 million for fiscal year 2004.
The sales decrease came as the result of a decrease in unit sales in the Company's men's wear line offset partially by an increase in unit sales of the Company's sleepwear. The Company reported a net loss for the year of $1.2 million or $1.03 per share, compared to net income of $557,000 or $.48 per share in fiscal 2004.
Net income for fiscal 2005 includes a loss of $64,000 on the Company's 28 percent interest in Designer Intimates Inc. versus a gain for fiscal 2004 of $14,000. Any gain or loss reported is non-cash and does not have a tax effect for the Company. For fiscal 2005, Designer Intimates had a net loss of $228,000 on sales of $45.7 million.
On October 24, 2005, the Company acquired the remaining 72 percent of Designer Intimates that it did not already own in an all-stock transaction.
As of November 30, 2005, the company had on-hand unfilled customer orders of $12.6 million for Nitches and $10.9 million for Designer Intimates, for total company backlog of $23.2 million, with such orders generally scheduled for delivery by May 2006. The amounts reflected in backlog include both confirmed orders and unconfirmed orders that the Company believes, based on industry practice and direct experience, will be confirmed.
Designer Intimates owns or licenses brandstargeted to all levels of distribution and offer a complete innerwear product line for women, men, and children. Brands sold by Designer Intimates include: