DANSKIN PROMOTES BROWN TO HEAD LEGWEAR DIVISION
NEW YORK — Mitch Brown has been promoted to general manager of legwear at Danskin Inc.
While the title is a new one, Brown will assume the responsibilities of Howard Hyde, who resigned last month as vice president of marketing and sales for legwear.
Brown was vice president of sales-department stores for Danskin Inc. and in that post reported to Hyde. He will absorb those duties in his new job and will report to Mary Ann Domuracki, Danskin president.
Hyde has since joined Baccarat Inc., an Edison, N.J.-based crystal and fine china manufacturer, as vice president of sales and marketing.
Brown, who joined Danskin 11 years ago as an account executive, moves into his new post at a time when Danskin’s hosiery division continues to slump.
In its second-quarter earnings report issued last week, Danskin Inc. reported sales at Pennaco for the three months ended Sept. 24 fell 11.7 percent and gross profit declined 39.4 percent.
Overall, Danskin posted a $2 million loss in the quarter, against earnings of $844,000, or 14 cents a share a year ago. Operating income before nonrecurring charges, including various costs related to Esmark Inc., an affiliated company, totaled $62,000, against $2 million in 1993. Sales were down 0.5 percent to $35.3 million from $35.4 million. In the six months, Danskin lost $3 million, including nonrecurring charges, against a profit of $877,000, or 15 cents. Sales slid 4.3 percent to $64.3 million from $67.2 million.
Second-quarter revenues for Pennaco came to $13.8 million, against $15.6 million a year ago, while gross profit was $2.9 million, against $4.8 million. In the six months, Pennaco’s sales fell 13.4 percent to $26.6 million from $30.7 million, and gross profit dropped 32 percent to $6.1 million from $9 million.
For the Danskin division, which makes bodywear and dancewear, sales in the quarter gained 8.3 percent to $21.5 million from $19.8 million, but gross profit fell 2.9 percent to $8.3 million from $8.6 million. For the six months, the division’s sales rose 3.3 percent to $37.7 million from $36.5 million, while gross profits declined 3.4 percent to $14.5 million from $15 million.
Howard Cooley, who joined Danskin in September as chief executive officer, said the company is working toward lowering selling, general and administrative expenses as well as improving its hosiery business to increase capacity utilization.
Danskin also announced it has increased its term note facility with First Union National Bank of North Carolina by $6.1 million. The company would not reveal the total amount of the credit facility.