I.C. ISAACS TRIMS LOSS TO $4.6M
NEW YORK — Bolstered by stringent expense controls and a successful relaunch of the Girbaud brand, I.C. Isaacs & Co. cut its fourth-quarter loss to $4.6 million from $9.5 million a year ago.
Sales slumped 17.1 percent to $16.4 million from $19.7 million as a result of declines in its Boss brand — to $5 million from $12.4 million — and Beverly Hills Polo Club — $2.6 million from $3.8 million. Sales of Girbaud, relaunched in 1998, jumped to $8 million from $2.3 million.
“We believe that the Girbaud brand has become a dominant part of our future with its strong 1999 performance,” said Robert J. Arnot, chairman and chief executive, in a statement. “Primarily as a result of growing demand for Girbaud, our open-order backlog at the end of 1999 increased 12.6 percent to $29.4 million, compared with $26.1 million at the end of 1998. This is the first time our quarterly order backlog comparison has shown an increase since the second quarter of 1997.”
Girbaud men’s is in more than 1,300 doors and women’s has reached more than 600, said Daniel J. Gladstone, president of the Girbaud division, on a conference call. Girbaud will be expanded this year to May Co., Federated, Saks, Gadzooks and Maurice’s, and is being fully rolled out at The Buckle, Gladstone added.
Urban Expedition, its new urban brand, began shipping in late February and initial retail performance has been strong, Arnot said. The brand is in more than 300 U.S. specialty stores and more than 100 in Europe.
“We are encouraged by improved retail sell-through of our Beverly Hills Polo Club brand. As a result, we are optimistic that we can achieve sales growth with the brand during 2000,” Arnot said. The Boss brand has been hurt by intense competition in the status denim market, especially for Boss products, the firm has said.
The leaner loss in the quarter also reflects a focus on reducing expenses and off-price sales.
“We will continue to aggressively review all aspects of our operations and plan to make additional reductions in expenses that don’t enhance our ability to generate near-term profits. As a result of our reduced expenses, the positive order backlog trend and the continuing strong reaction to Girbaud, it is our goal to report a profit for the first quarter of 2000, as well as for the entire year,” Arnot said.
In the full year, losses were trimmed to $10.2 million from $16.8 million. Sales slumped 25.7 percent to $84.5 million from $113.7 million. Sales of Boss fell to $37 million from $83.4 million, and Beverly Hills Polo Club slid to $14.6 million from $16.6 million, while Girbaud sales increased to $27.8 million from $4.7 million.