NEW YORK — Increasing competition from private labels and brands continued to erode results at Donnkenny Inc., ultimately pushing the company to a loss for the third quarter.
This story first appeared in the November 18, 2003 issue of WWD. Subscribe Today.
For the three months ended Sept. 30, the New York-based women’s sportswear and coat manufacturer posted a loss of $386,000, or 9 cents a diluted share, compared with net income of $1.6 million, or 36 cents, in last year’s quarter.
Sales for the period plunged 23.6 percent to $23.4 million compared with $30.7 million last year.
According to the company, a depressed retail environment, sagging consumer confidence and price reductions were key factors contributing to the sales decline.
The company said it believes recent acquisitions and continued cost reduction efforts will drive future growth.
Daniel Levy, chairman and chief executive officer, said in a statement, “Both of our acquisitions, Bill Blass Coats and Robyn Meredith, are performing as expected and combined with our continuing expense reduction initiatives, should contribute substantially to our fourth quarter and future performance.”
For the year to date, losses narrowed significantly to $1.9 million, or 43 cents a diluted share, as opposed to $27.2 million, or $6.22 a share, last year, when the firm realized a $28.7 million effect from a change in accounting principle.
Sales for the nine months were down 22.3 percent to $60.2 million from $77.5 million last year.