Differential Brands sales double with Hudson Brands performance
Differential Brands Group Inc. reported its second quarter results on Tuesday. The company benefitted from Hudson Jeans’ performance and a remerchandising and revamp for Robert Graham.
Michael Buckley, Chief Executive Officer, commented, “We are very pleased that we continued to improve our product offerings across our portfolio of brands during the second quarter, as we worked to implement our new branded platform approach. Organic sales results in the quarter were impacted by continued challenges across both our Wholesale and Consumer Direct segments as a result of overall headwinds in the consumer retail environment.”
Buckley added that the company is focused on growing the business organically and through acquisitions like the recent Swims acquisition made in July.
Overall net sales climbed to $32.4 million from $16.3 million in the prior second quarter due in part to $17.7 million in sales from Hudson. The denim brand also contributed $16.8 million in net sales to the Wholesale segment, which increased to $22.8 million in the second quarter. The Consumer Direct segment increased to $9.1 million from $7.2 million due to the Hudson e-commerce business and the opening of nine new stores.
Overall gross profit increased to $17.1 million from $10.0 million and operating expense was $20.2 million compared to $10.2 million in the prior year. Net loss was $3.6 million and loss per share was $0.29. Excluding transaction expenses associated with the RG Merger and Swims acquisition, net loss was $1.7 million and loss per share was $0.13.
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