PLUMA SEES 50-60% DROP IN NET, CITING MANUFACTURING PROBLEMS
EDEN, N.C. — Pluma Inc. said it expects a 50 to 60 percent drop in third-quarter earnings as a result of manufacturing problems.
Revenues for the three months ended Sept. 30 are expected to be $37 million to $39 million, the firm said in a statement last week.
A year earlier, Pluma, which makes fleece and jersey activewear, earned $2.7 million, or 27 cents a share, on revenues of $39.7 million.
“The reason for the shortfall is twofold: our failure to execute and manage our manufacturing operations as well as we should have, which caused us to fall behind on shipments, and inconsistent delivery and quality of certain raw materials and subcontracted goods,” R. Duke Ferrell Jr., president and chief executive officer, said in a statement.
“The bright spots in all this, however, are that to date, we have not incurred any order cancellation, and we still see a healthy demand for our products.”