Hampshire Group Ltd. saw fourth-quarter losses deepen as isales fell and it accounted for a number of special items.
In the three months ended Dec. 31, the New York-based sportswear and knitwear firm’s net loss grew to $9.9 million, or $1.17 a diluted share, from a loss of $1.5 million, or 8 cents, in the final quarter of 2012. Eliminating $6.9 million in pretax, noncash charges for goodwill impairment and a loss on a lease obligation as well as interest, taxes, depreciation and amortization, adjusted ebitda fell to $644,000 from $1.8 million.
Revenues in the quarter fell 13 percent, to $35 million from $40.2 million, with reduced revenues from licensing agreements that expired late in 2012 offsetting gains in the company’s Rio Garment division and its remaining men’s branded operations.
“While the fourth quarter and full year 2013 results were disappointing, several one-time expenses during the quarter and year, as well as losses from discontinued operations, mask underlying progress in gross profit margins and expense reduction,” said Paul Buxbaum, chief executive officer. “We’ve accounted for several historic obligations more accurately with these accounting changes and we produced with the fourth quarter figures our first significant quarterly improvement in cost reductions.
“We expect a continued difficult 2014 sales environment,” he added. “However, we expect to see operating improvement in 2014.”
The company has delayed the filing of its annual report with the Securities and Exchange Commission as it seeks to amend certain terms of its credit facility, including the covenant covering its minimum consolidated ebitda requirement.
The company last month acquired rights to the James Campbell trademarks through an installment purchase and sale agreement with Rick Solomon Enterprises, Richard Solomon and Maverick J LLC. Hampshire doesn’t expect to realize “the full annual benefit” of the acquisition until next year but does anticipate to begin to realize savings from new sourcing arrangements beginning this year. James Campbell’s 2015 sales are expected to total about $8 million “with gross profit margin generation higher than our core license or manufacturing businesses,” Buxbaum said.
Last week, the company promoted David Price to chief operating officer. He joined the firm in 2012 as senior vice president of operations. He was previously associated with Buxbaum during a tenure as senior vice president of operations at Haggar and has also work in operations at companies include VF Corp.’s Wrangler unit.
For the full year, Hampshire’s net loss increased to $16 million, or $2.06, against a loss of $11.7 million, or $1.61, in 2012. Revenues declined 8.6 percent to $105.1 million from $114.9 million.
Buxbaum succeeded Heath Golden as ceo of Hampshire in January 2013. He was elected chairman in June shortly after the company sold the Scott James brand back to founder Scott Kuhlman.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast