ANDERSON, S.C. — Battered by restructuring of its hosiery operations, Hampshire Group Ltd. reported a first-quarter loss of $96,000, but showed an operating profit.
A year ago, after a $1.3 million accounting gain, the company reported profits of $280,000, or 8 cents a share.
In the quarter ended April 2, operating earnings were $98,000, against a $748,000 operating loss.
Sales dropped 30 percent, to $13 million from $18.6 million. The company attributed the slump to its restructuring of hosiery operations, which included giving up the licensed Christian Dior hosiery business to focus on private label.
The company said sweater sales declined, but a shift in mix of business and greater productivity helped boost gross profit. Hampshire said the first quarter was usually the slowest for sweaters, with the third and fourth quarters producing most of the profit for the year. Decreased selling, general and administrative expenses helped offset a significant decline in gross profit from hosiery because of lower sales and manufacturing inefficiencies.
Ludwig Kuttner, chairman and chief executive officer, said the sweater business was performing solidly, but that it would be some time before the hosiery business’s problems were resolved. He said, though, he expected improved results for the balance of the year. Meanwhile, Fritz Schulte, president of Hampshire Hosiery, the company’s hosiery unit, announced some personnel changes to reflect the increased focus on private label.
Mary Dabrowski, who was executive vice president of marketing Christian Dior Hosiery, has been named executive vice president of marketing and fashion.
Jay Walsh, who was national accounts manager, has been named vice president of sales.