The recession and the retail bankruptcies it has triggered pushed Tarrant Apparel Group Inc. to a fourth-quarter loss on a double-digit sales decline.
For the quarter ended Dec. 31, the Los Angeles-based firm lost $5.8 million, or 19 cents a diluted share, compared with profits of $325,000, or 1 cent a share, a year earlier. Included in the loss for the 2008 quarter was a pretax goodwill impairment charge of $1.4 million for the disposition of Tarrant’s 45 percent stake in American Rag Cie LLC. Sales in the three months fell 34.5 percent to $37.5 million from $57.3 million in the 2007 quarter.
Tarrant said the bankruptcy of department store chain Mervyns, a significant customer, weighed on private label sales.
The company reported a full-year loss of $11.1 million, or 35 cents a share, versus profits of $1.7 million, or 6 cents a share, in 2007. Sales in the 12 months fell 19.9 percent to $195.3 million from $243.7 million in 2007.
Last month, Tarrant agreed to sell its outstanding publicly held shares to its founders, Gerard Guez and Todd Kay, for about 85 cents a share, or $15.2 million.
Peter Kim's Los Angeles-based premium denim line has always had its finger on the pulse of youth. This season, novelty is back in a way reminiscent of early Aughts, with studs, lace-ups, racing waxed denim and more. For more highlights if some of the key brands at the Vegas trade shows, go to WWD.com. #wwdfashion (📷: Patrick Gray; Styles by @thealexbadia; Story by @karihamanaka and @marcy_wwd)
"I was driving back on Saturday afternoon from the beach, and I just saw this sign saying 'Skydiving for $95.' And I was like, I can't not sky dive for $95," says Tom Bateman about a moment in Hawaii while shooting "Snatched." #wwdeye (📷: @vsteves; Interview by @ktauer; Styled by @thealexbadia)