NEW YORK — Driven by strong performance in its denim operation and margins boosted by cost-cutting measures put in place over the past year, Cone Mills Corp. reported $3 million in net income for the fourth quarter of 2002, compared with a $3.5...
NEW YORK — Driven by strong performance in its denim operation and margins boosted by cost-cutting measures put in place over the past year, Cone Mills Corp. reported $3 million in net income for the fourth quarter of 2002, compared with a $3.5 million net loss in the year-ago period.
The company also reported a profit of $7.2 million for the year, marking the Greensboro, N.C.-based firm’s first profitable fiscal year since 1994. Last year, the company posted a $40.6 million net loss, which included $19.9 million in pretax restructuring charges.
Of this accomplishment, president and chief executive officer John Bakane said in a conference call with financial analysts: "This…fulfills the commitment the management team made to our stakeholders in last year’s annual report."
However, Bakane made it clear he wasn’t reaching for the champagne. He said: "This ceo believes that the U.S. economy is in deep trouble because, contrary to popular belief, the U.S. is not in a garden-variety fiscal downturn. I believe we are in a secular downturn caused by the biggest blunder in trade policy since the U.S. depression."
He noted that China’s manufacturing plants are attracting 20 million new workers a year at a time when the entire U.S. manufacturing sector employs 17 million. He noted that Cone and other U.S. manufacturers need to modernize their plants and migrate to lower-cost nations to prepare for the onslaught of competition in 2005, when the 145 nations of the World Trade Organization are to drop quotas on apparel and textiles.
Cone and others are constrained in doing so, he said, because "U.S. capital markets are frozen like a deer in headlights at a time when U.S. manufacturers need capital to modernize and prepare for a trade war."
Cone itself has proposed to issue $27 million in debt that can be converted into stock as part of its effort to build its manufacturing base in Mexico and Turkey. That proposal has drawn the fire of dissident director Marc Kozberg who, as reported, has assembled a group of investors with an 8.9 percent stake in the company in an effort to shoot the proposal down. Kozberg’s complaint is that the proposal would dilute the value of Cone’s stock.Cone reported that its Parras Cone de Mexico joint venture last year contributed $8.3 million to its operating income. Cone officials also said that a joint venture in Turkey established last year started to ship product to Levi Strauss & Co.’s European division in recent weeks.
For the quarter ended Dec. 29, Cone’s sales were up 15.5 percent to $102.3 million. For the year, sales were down 1 percent to $365.4 million. The denim division recorded $11.9 million in earnings from continuing operations in the quarter, up from $2.5 million in the prior year’s quarter. Sales rose 31.1 percent to $86.1 million.
For the year, the division earned $38.1 million, up from $13.4 million. Sales rose 3.8 percent to $365.4 million. Cone shares fell 15 cents, to close at $1.47 in New York Stock Exchange trading on Thursday.
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)
@Pharrell and his wife Helen Lasichanh were among the stars that came out to celebrate @rimowa’s first pop-up concept shop. The space, which is located on Rodeo Drive in Beverly Hills, draws inspiration from airport luggage carousels and lounge areas – and features the company’s luggage and accessories. If the pop-up is successful it could pave the way for addition temporary shops throughout the world. #wwdfashion (📷: Owen Kolasinski/BFA)
@carineroitfeld celebrated @crfashionbook’s first calendar last night with a dinner party at Spring Place in Manhattan. Photographed by @stevenkleinstudio, the calendar takes on a fitness theme and features @joansmalls, @gigihadid, @danielle_herrington_ – pictured here – and more. “[Carine Roitfeld] wanted me to feel sexy and she wanted me to be myself and feel it out on my own and do what I felt was right,” said Herrington, aka Miss October. #wwdeye
@saintrecords and @virgilabloh last night at @americanexpress’ “A Night With Success Makers” event. “I always bring it back to community because without that I wouldn’t have the courage,” said Knowles when asked how she has gotten where she is now. Read more highlights from their conversation on WWD.com. #wwdeye (📷: @lizdoupnik)
This Just In: Industry sources have told WWD that Anastasia Soare is rumored to be considering selling her beauty business, @anastasiabeverlyhills. According to those sources, Soare has tapped investment bank Imperial Capital to explore sale options for her eponymous beauty brand –– and with at least $340 million in net sales, this would be a big deal. Put in context of other recent transactions for makeup companies, Soare’s price tag could be in the billions if she were to sell the whole thing. #wwdnews #wwdbeauty (📷: @clint_spaulding)
@assouline’s latest book, “The Spirit of Bentley: Be Extraordinary” captures the adventurous attitudes and opulent lifestyles of @bentleymotors’ most creative owners and enthusiasts throughout the U.K. The 292-page hardcover has a section dedicated to showing its team of skilled artisans and photos of its most colorful owners, from George Bamford to designer @alicetemperley, pictured here by Aline Coquelle. #wwdeye
@google released its report on the most popular search terms this year. For fashion brands, the list was led by @gucci, the luxury brand that stunned the market last October when it pledged to stop using fur. Runner ups were @supremenewyork and @fashionnova, along with more established brands like @louisvuitton, @chanelofficial and @ysl. #wwdfashion (📷: @aitorrosasphoto)
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)