ATLANTA — Ashworth Inc. is considering a potential sale or merger of the company, executives said Tuesday following a quarterly net loss for the golf lifestyle apparel manufacturer.
For its third quarter results ending July 31, the Carlsbad, Calif.-based company suffered a net loss of $9.6 million, or 65 cents per share, compared with a net loss of $5.7 million, or 39 cents per share, in the year-ago period.
Consolidated net revenue slumped 8.7 percent to $45.2 million, down from $49.5 million a year ago.
In a conference call yesterday, Ashworth CEO Allan Fletcher declined to comment further on the potential sale or merger of the company. Ashworth has retained Kurt Salmon Associates Capital Advisors as its financial advisor to explore strategic alternatives.
Strong performance in the company’s domestic golf business, which grew 5.5 percent to 18.2 percent, was not enough to offset losses elsewhere, including Ashworth’s company-owned outlet stores and international sales, Fletcher said.
Sales in Ashworth’s company-owned stores fell 19.8 percent to $2.6 million, which Ashworth blamed on a soft retail environment as well as product assortment and merchandising troubles. International sales fell 14.4 percent to $7.3 million, a result of larger discounts within its resort, golf and retail customers in Europe.
The company’s corporate channel revenue fell 31.5 percent to $4.3 million, which executives said resulted from a decrease on a consolidation of retail accounts and their associated location closures, along with a decision to strategically exit a number of large accounts.
In Tuesday after-hours trading, Ashworth stock rose 6.4 percent to $3.99, or 24 cents a share.
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“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