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Costs Cut Q3 Profit
Restructuring costs have dragged down third quarter profits at apparel group Hanesbrands, where net income
fell 59.1% to US$15.9m as sales stagnated.
The group's net sales were unchanged at $1.15bn, but profits were hit by restructuring costs as the company
closed down plants in the West, switching production to lower-cost sourcing countries.
The bankruptcy of regional retailer Mervyn's also had an impact.
Hanesbrands also announced average gross price increases of 4% for domestic product categories, with
effect from the middle of the first quarter of 2009.
"We continued our strategic execution in the third quarter and delivered
comparable sales and solid earnings per share in a difficult environment," said
Hanesbrands CEO Richard A Noll.
"We remain optimistic about our earnings potential for the fourth quarter due to
favorability of expenses that may more than offset the challenges of higher
commodity costs and an uncertain sales environment."
Sales increases in the innerwear and international segments were offset by declines in the sheer hosiery
segment and the other segment, the company said.
Strong sales of Hanes male underwear drove the 2% innerwear sales increase, while Champion activewear
revenues delivered a double-digit increase for
Hanesbrands' net sales for the first nine months of the year dropped 3.1% to $3.21bn. For the third quarter,
operating profit was down $13.1m.
The company now expects net capital expenditure of $155m this year, while for next year the figure is
expected to be about $115-135m.
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Lolita-Girl Clothing Announces
Lolita-Girl Clothing, the leader in retro lingerie, dresses and swimwear just released the new Sailor Betty Collection as well as the new Punk Rock Pin-Up Collection. Both of these exciting new lines are truly a delight, filled with polka dots, stripes, embroidered appliqués, satin ribbon and bows. Both of the new collections are also now available in extended sizing S-XL.
Currently, Lolita-Girl is working on the new Jungle Fever Line that will be released in November, the Classics Line that will be released in January and the newest line, Silver Screen that will be
released in late March or early April.
“Our unique color combinations, original designs, superb fit and personalized customer service is what sets Lolita-Girl Clothing apart from the competition,” explains Maureen Fokos, the company’s designer. “We focus on getting the best fit for each unique garment while paying special attention to the smallest detail. This philosophy allows Lolita-Girl to produce high quality 'one of a kind' outfits for which we’ve become known.”
Despite the current economic concerns in our nation, Lolita-Girl is still growing by leaps and bounds. A projected 25 to 30% growth is estimated for this year alone. Fokos attributes this to the company’s unique designs, competitive pricing and the brand’s global recognition. She observed, “From early on, we focused much attention on international sales and accounts, which has proven to be a successful strategy in today’s market.”
For more information, please contact the Lolita-Girl sales office at 949-249-9839 or visit the website at
PacSun Rejects Takeover Bid
Pacific Sunwear of California has rejected a renewed
US$329m takeover bid from extreme sports operator Adrenalina, arguing that it is not in the best
interests of shareholders.
The skate and surf wear company had already rejected a $4.50 per share, cash and stock bid from Adrenalina
earlier this month, prompting an increased Adrenalina offer of $5 per share, 11% higher than its original
"I call on the PacSun board of directors to act in the best interests of their shareholders by engaging in
discussions with Adrenalina to implement our proposal,"
said Adrenalina chairman and CEO Ilia Lekach, pointing out that the new bid represented a premium of 67% above
the closing price of PacSun common shares on October 28.
"We believe their board acted hastily and without full consideration in rejecting our earlier offer.
"Instead of enhancing shareholder value, PacSun's share price has declined 20% since October 17, the day prior
to our original offer, which represents a loss of more than $45m in market value."
Adrenalina said it had identified a range of strategic partners willing to provide the necessary financial
support to close the transaction.
And Lekach said he remained "excited" about the potential to reinvigorate
PacSun through "a combination of Adrenalina's innovative lifestyle retailing concepts
with PacSun's established brand and extensive store footprint".
But PacSun said: "The company's management, with the full support of the board, is committed to executing on
their strategic plan to create long-term shareholder value."
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