TEFRON’S FOURTH-QUARTER NET MORE THAN DOUBLES
NEW YORK — Benefiting from strong demand for its seamless intimate apparel, Tefron Ltd. said its fourth-quarter profits more than doubled, although its full-year results fell.
Tefron, based in Bnei-Brak, Israel, said its profits climbed to to $3.1 million, or 25 cents a diluted share, from $1.4 million, or 11 cents. Sales for the quarter ended Dec. 31 jumped 81.7 percent, to $40.8 million from $22.4 million.
During the quarter, Tefron added DKNY to a customer roster that includes Victoria’s Secret, Gap, Banana Republic, Sears and Express. Tefron also completed its acquisition of U.S. seamless intimate apparel maker Alba-Waldensian.
For the full year, Tefron’s earnings fell 33.3 percent to $8 million, or 64 cents, from $12 million, or 90 cents. Sales gained 32.3 percent to $128.8 million from $97.4 million.
“As the pioneer of mass-produced seamless technology, we were the first to recognize the potential of the seamless market and made a strategic decision to invest heavily in our Hi-Tex Division,” Sigi Rabinowicz, Tefron chief executive, said in a statement. “Now demand for Hi-Tex garments has grown exponentially and we expect the growth to continue for the foreseeable future.”
Tefron shares dropped 3/4 to close at 16 1/16 on the New York Stock Exchange Monday.