Embattled Tandy Brands Accessories Inc. saw its net loss nearly triple as it endured sharply lower sales and a series of charges in its effort to reorganize its finances and operations.The company reiterated that it expected to have a new credit facility in place by the end of the month and had signed nonbinding term sheets with lenders for financing at rates expected to range from 9.3 to 12 percent. A poor holiday season nudged Tandy out of the profitability requirements of its $35 million credit facility with Wells Fargo, which last month granted the Dallas-based firm a waiver on those covenants. RELATED STORY: Tandy Brands Gets Wells Fargo Waiver >>In the third quarter ended March 31, Tandy suffered a net loss of $8.5 million, or $1.19 a diluted share, versus a loss of $3.1 million, or 43 cents, in the 2012 period. Included in the loss were pretax charges of $3 million for intangibles and held-for-sale impairments and $2.6 million for restructuring. Sales descended 17.9 percent to $19.6 million from $23.9 million a year ago as gross margin fell to 26.7 percent of sales from 31.7 percent of sales in the year-ago period. Cost of goods sold fell 11.9 percent to $14.3 million and selling, general and administrative expenses dropped 22.7 percent to $7.6 million.“Our third-quarter net sales were impacted by abnormally low levels of replenishment sales to the largest customer in our accessories segment,” said Rod McGeachy, president and chief executive officer of Tandy. “This decline was driven by [the customer’s] decision to delay new spring roll-outs early in the quarter and does not represent any material change in our market share.”Wal-Mart is the company’s largest accessories customer, according to the firm’s annual report.RELATED CONTENT: WWD Earnings Tracker >>Tandy’s difficulties intensified after a poor holiday season in which sales in its gift segment were weak, causing higher-than-expected sales allowances and returns. After finding itself in violation of its profit covenants with Wells Fargo, its stock price declined by nearly two-thirds. In March, it retained Deloitte Financial Advisory Services LLP and named Deloitte’s John Little its chief restructuring officer to help it navigate a turnaround. Its stock price has since picked up from the 52-week low of 38 cents hit on April 17 to 74 cents on Wednesday, when shares rose 7 cents or 10.5 percent. In the nine months, the net loss expanded to $15.4 million, or $2.16 a diluted share, from a loss of $1.4 million, or 20 cents, in the first three quarters of 2012. In addition to the third-quarter charges, this year’s loss included a pretax inventory writedown of $6.7 million. Sales declined 2.8 percent to $93.4 million.
A first look at @virgilabloh’s sneakers for @louisvuitton. Abloh spoke to WWD about his debut collection for Louis Vuitton, creating @kendalljenner’s #metgala outfit and redefining the heritage brand. Read the full story on WWD.com. #wwdfashion 📷: @alfredo_piola)
The world’s largest producer of denim @iskodenim is sharing the strategy behind its product development process. Read our full interview with ISKO’s product development manager Baris Ozden on the company’s extensive research practices, upcoming denim trends and the latest material innovations on WWD.com. #iskodenim
“I genuinely fell in love with water, I fell in love with Fiji, I fell in love with the whole life that we lived for those few months,” says @mrsamclaflin of filming for his new movie “Adrift” with @shailenewoodley. The 31-year-old actor spoke with WWD about his upcoming projects, meeting Jamie Dornan and working with co-star Woodley. #wwdeye (📷: @jamstoker)
3 years ago, fans of the late singer Aaliyah started calling for a collaboration with @maccosmetics. With the strength of social media — including mock ups of products — 25,000 people signed a Change.org petition for a limited-edition collection, and MAC couldn’t ignore the buzz. Tomorrow, MAC will unveil MAC x Aaliyah, a tribute to the singer who passed away nearly 17 years ago. Head to our stories to preview the new collection, which was worked on by Aaliyah’s family and inspired directly by her makeup bag. #wwdbeauty
Artistic director @clarewaightkeller will be dedicating @givenchyofficial’s fall 2018 couture show in Paris on July 1 to house founder Hubert de Givenchy, who passed away in March at age 91. Givenchy said the collection would be “an homage to his iconic creations, technique, and personal lexicon” and a “celebration of his timeless elegance and grace.” Head to WWD.com to read more. #wwdfashion (📷: Delphine Achard)
La Double J made a name for itself with its vintage-inspired prints, but for resort, designer JJ Martin has ventured into new territory: enter rich jewel toned solids and decadent embellishment, in the form of appliqués, crystals and sequins. #wwdfashion #resort19 #ladoublej
This Just In: J. Crew Group has named Johanna Uurasjarvi as its chief design officer.
Uurasjarvi succeeds Somsack Sikhounmuong, who left the company last September. Tap the link in bio for the full report. #wwdnews
“She came into my hotel room and she was like, ‘I have Chanel and Christian Dior.’ She was like, ‘Chanel likes you.’ And I was like, ‘I’m going to start crying,’” breakout star Maddie Hasson tells WWD of her styling sessions Molly Dickson. “I really like classic, elegant things. I love the way Anna Wintour dresses.” Read more about Hasson’s role in @impulseseries on wwd.com. (📸: @jgreenery ) #wwdeye
@virgilabloh revealed he's working with Australian stylist and
Vogue Australia fashion director @christinecentenera for his debut @louisvuitton men's collection, which will be presented in Paris on June 21. Centenera met Abloh while both working with Kanye West, where she consulted on his all his runway collections since his debut spring 2012 women's wear show. Read the full story on WWD.com. #wwdfashion #wwdnews (📷: @asussmanphoto)