NEW YORK — New products, improved women’s wear results and the sale of its headquarters translated into fourth-quarter earnings that more than doubled at Haggar Corp.
This story first appeared in the November 10, 2003 issue of WWD. Subscribe Today.
For the three months ended Sept. 30, the Dallas-based apparel manufacturer reported a 106.8 percent rise in earnings to $7.3 million, or $1.12 a diluted share, compared with $3.5 million, or 55 cents, in last year’s quarter.
However, sales were down 5.8 percent to $125.5 million against $133.2 million last year. David Tehle, chief financial officer, attributed the decline to lower DKNY sales, which totaled $3.1 million for the quarter.
Negative impacts from the DKNY business were offset by the successful launch of the company’s comfort-fit waist pant and stain-resistant wrinkle-free Freedom Khaki lines. In addition, Frank Bracken, president and chief operating officer, said in a statement that the August launch of Kenneth Cole licensed products was a “smashing success.”
During a conference call, Bracken went on to say that in contrast to previous years, the women’s wear segment had improved significantly. “Women’s wear may be one of our biggest success areas this quarter,” said Bracken, pointing to the spring rollout of Haggar brand pants in 800 J.C. Penney stores.
Results were also buoyed by the sale of the company’s headquarters, resulting in a pre-tax gain of $5.9 million. The company plans to move into its new space, also in Dallas, during the second week of January. Joe Haggar 3rd, chairman and chief executive officer, said during the conference call, “It’s going to bring our men’s and women’s groups under one roof. We expect to get some synergies from that.”
For the year the company reported earnings of $9.9 million, or $1.53 a share, compared with a loss of $7.6 million, or $1.17 a share, last year.
Sales for the year were up marginally to $482.4 million from $481.8 million last year.