NEW YORK — The economic downturn is weighing heavily on Hartmarx which announced Thursday that it will close a sewing facility in Missouri and eliminate some 150 jobs. The cutting positions at that facility will remain.
The news came as the Chicago-based concern posted results for another tough quarter. Revenues for the three months ending Aug. 31 fell 8 percent from $135 million to $124 million. The company’s net loss for the period was $2.4 million, or 7 cents per diluted share, compared with a half a million dollar gain in the same period last year. The company has not posted a net gain thus far in 2008.
“Our very disappointing third quarter and year-to-date operating results are reflective of a most challenging economic and retail environment,” said Homi Patel, chairman and CEO, in a statement.
Patel cited low consumer confidence and declines in discretionary apparel purchases by professional men as two causes of the poor results. He added that residual effects of its move to reduce moderate clothing business continue to weigh on performance as losses associated with licensing minimums and increased liquidations weigh on costs.
The company is estimating full-year revenues in the range of $490 and $500 million and a full-year loss between 25 and 35 cents per diluted share.