ELDERSBURG, Md. -- London Fog Industries reported net earnings in the third quarter ended Nov. 27 rose 9.8 percent with a 14.8 percent hike in sales.
Net earnings in the three months were $10.3 million versus $9.3 million a year ago. The most recent quarter includes a pretax charge of $1.2 million for a restructuring of domestic manufacturing operations, developed by the new top management put in place at the company last year.
Sales in the quarter were $151.1 million, against $131.6 million.
London Fog is privately held, but releases financial information to holders of its 13 5/8 percent senior subordinated notes.
Additional restructuring costs will be incurred in the fourth quarter, London Fog said, when a definitive restructuring plan is expected to be in place. The firm said these costs "may be significant."
In the nine months, net earnings declined 24.8 percent, to $3 million, after the same restructuring charge, from $4 million a year earlier. Sales moved up 14.4 percent to $285.4 million from $249.4 million, reflecting increased sales to trade channels and in factory outlet stores.
Gross profit as a percentage of sales declined to 27.6 percent in the nine months from 28.7 percent a year earlier, reflecting aggressive markdowns to dispose of older, slower-moving merchandise at its factory outlet stores.
“I see things on the hanger and I’m, like, ‘I never knew that color worked on me.’ It’s things you necessarily wouldn’t choose to wear, but once you put them on, you see why Janie is who Janie is." — Lily Collins on working with former "Mad Men" costume designer, Janie Bryant on creating looks for her role as Celia Brady's in Amazon series, "The Last Tycoon." 📸@jilliansollazzo #wwdeye
EXCLUSIVE: Sarah Rutson has been tapped to Build New American Fashion Group. The parent of Joie, Equipment and Current/Elliott hired the merchant to rev up its brands and expand its portfolio into designer, beauty and lifestyle categories. Read more on WWD.com, link in bio. #wwdfashion
Michael Kors' $1.3B Jimmy Choo deal has the company squaring off with Coach Inc. as both seek to build American powerhouses. Coach bought Stuart Weitzman in 2015 and Kate Spade just two weeks ago, but Michael Kors' acquisition may be putting pressure on its rival in the new push for scale. #wwdnews (📷: George Chinsee)
Meet actress Lucy Boynton, who plays opposite Naomi Watts in the recently released Netflix series "Gypsy." Boynton stopped by WWD to talk about her upcoming projects and her nomadic lifestyle. Get all the details on WWD.com. #wwdeye (📷: @dandoperalski)