NEW YORK — Danskin posted third-quarter earnings of $87,000, or 2 cents a share, against a loss of $653,000 a year earlier and saw a substantial hike in nine-month profits.
The firm also reported a restructuring of its bodywear and legwear sales force geared to channels of distribution.
Earnings in the nine months ended Dec. 25 were $964,000, or 17 cents a share, compared with year-ago earnings of $138,000, which after preferred dividends of $240,000 came to a loss of 2 cents a share.
Sales in the third quarter increased 10 percent to $33 million from $30 million. Sales at the Danskin division rose 15.4 percent, and sales at the Pennaco hosiery division were up 4.6 percent.
Nine-month sales rose 2.5 percent, to $53.8 million from $48.9 million, with a 10 percent increase at the Danskin division but a 4.9 percent decline at Pennaco.
In the nine months, gross margins at the Danskin division increased 18.1 percent, but decreased 13.1 percent at Pennaco, reflecting overcapacity in the hosiery industry and lower industrywide shipping levels of women’s sheer hosiery, the firm said.
In reorganizing its sales force, the firm is aiming at three distribution channels:
- Sporting goods and small specialty stores.
- Department stores and large specialty chains in the Northeast region.
- Department stores and large specialty chains in the Midwest and on the West Coast.
Mary Ann Domuracki, president, said the new plan will improve distribution, enhance customer service and save the company an estimated $500,000 through operating efficiencies and staff cuts for the upcoming fiscal year, which begins March 28. The sales effort formerly had been split between legwear and bodywear and organized by region rather than by the type of accounts.
Five regional management posts and several account executive posts have been cut.
The decision to restructure was based primarily on results of a three-month test and feedback from customers, Domuracki said.
The consolidation includes several executive shifts.
Glen Greenbaum has been named vice president of sales for sporting goods and small specialty stores. He was vice president of sales for Danskin brand bodywear and activewear.
Howard Hyde has been appointed vice president of sales for department stores and large specialty chains in the Northeast. He also will continue as vice president of marketing for the firm’s Pennaco legwear division, which includes private label and the Round the Clock and licensed Anne Klein and Givenchy brands.
Greenbaum and Hyde report to Domuracki.
Mitch Brown, who was vice president of sales and administration for the Pennaco division, has been named vice president of sales for department stores and large chains in the Midwest and West Coast. He also will oversee the Danskin Plus business, as well as sales administration and closeouts. He reports to Hyde.