Tarrant Apparel Group trimmed its first-quarter loss despite the evaporation of more than one-quarter of its revenues.
The Los Angeles-based firm reported a net loss of $171,000 for the three months ended March 31, compared with the $253,000 loss in the first quarter of 2008. The loss per diluted share was unchanged at 1 cent.
Revenues slid 26.1 percent to $37.3 million during the quarter from $50.5 million in the same period last year. While private brand sales rose to $11.1 million from $8.3 million in the year-ago quarter, private label sales fell to $26.2 from $42.2 million.
Gross profit dropped to $8 million from $10 million, but gross margin rose to 21.4 percent of sales from 19.9 percent a year ago.
A more than $10 million reduction in the cost of sales and smaller cuts in selling, general and administrative and royalty costs helped Tarrant post a $153,000 operating profit versus a $43,000 operating loss in last year’s first quarter. Year-ago figures were hurt by a charge of $848,000 from damages imposed by U.S. Customs.
The reduction in royalty expenses, down 21.6 percent to $262,000, was because of lower rates under Tarrant’s amended licensing agreement with American Rag Cie LLC.
Tarrant in February agreed to be sold for $15.2 million to Sunrise Acquisition Co. LLC, a firm controlled by Tarrant’s founders, chief executive officer Gerard Guez and vice chairman Todd Kay. The acquisition of the shares not already owned by Guez and Kay is subject to approval by holders of at least two-thirds of the outstanding shares of the firm and other closing conditions. Tarrant said in a regulatory filing with the Securities and Exchange Commission that it will be filing the necessary proxy materials but didn’t specify a date.
@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
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@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