CHATTANOOGA, Tenn. — Signal Apparel Co. Inc. narrowed its first-quarter loss to $2.8 million from a loss of $3.5 million a year ago.
Sales for the quarter ended March 31, dropped 37.2 percent to $27.5 million from $43.7 million.
Marvin A. Davis, chairman and chief executive officer, said the decline in sales was expected and net loss and cash flow performance were better than company expectations. He attributed the sales reduction to severe weather, competition in the T-shirt industry and discontinuing of the Keds Apparel division in fall 1993. Sales grew in the company’s knitwear distributor division, Davis added.
He noted that although sales were down, the company’s focus on margin and costs in the last nine months has begun to show in bottom line improvement. Selling, general and administrative expenses were $1.8 million less than 1993 as a result of cost reductions and the closing of the Keds Apparel division, Davis said.
Signal markets and manufactures sportswear, screenprinted apparel and women’s knit apparel.