4 December 2009, Misgav, Israel - Tefron Ltd., a leading
producer of seamless intimate apparel and performance active wear, has announced
its financial results for the third quarter of 2009, which show significantly widening
losses when compared with the same period in 2008.
Third quarter revenues were $21.0 million, representing a
45.1% decrease from the third quarter of 2008 revenues of $38.3 million. The
decrease in revenues in the quarter was due to a decrease in sales in all of
the company's product lines, primarily due to the worldwide economic slowdown.
The company reported a gross loss in the quarter of $5.5
million, compared with a gross loss of $1.9 million in the third quarter of
2008. Operating loss for the quarter was $9.3 million, as compared with an
operating loss of $7.1 million in the third quarter of 2008. Net loss for the
quarter was $8.3 million, or $3.9 loss per diluted share, as compared with net
loss of $5.8 million, or $2.7 per diluted share, in the third quarter of 2008.
The decline in gross and operating margins in the quarter
compared with the third quarter of 2008 was primarily due to the significant
decline in revenues which exceeded the corresponding decline in the company’s fixed
expenses that resulted from the implementation of its efficiency plan and the
devaluation of the US Dollar versus the New Israeli Shekel.
Revenues in the nine months of 2009 were $93.3 million,
representing a 32.4% decrease from nine months of 2008 revenues of $137.9
million. The decrease in revenues was due to a decrease in sales of both the
active-wear and intimate apparel product lines.
The 2009 nine months period gross loss was $1.6 million
compared to a gross margin of $8.7 in the nine months period of 2008. Operating
loss was $15.3 million compared to an operating loss of $8.4 million in the
nine months of 2008. Net loss was $12.7 million, or $6.0 loss per diluted
share, compared with net loss of $8.6 million, or $4.0 per diluted share, in
the nine months of 2008. These decreases in margins were due to the significant
decline in sales, which exceeded the corresponding decline in the company’s fixed
expenses that resulted from the implementation of its efficiency plan and due
to maintenance costs associated with new sales offices that it opened in 2009.
Tefron manufactures seamless intimate apparel, active wear
and swimwear sold throughout the world by such name-brand marketers as
Victoria's Secret, Nike, Target, The Gap, J.C. Penney, Maidenform, lululemon
Athletica, Warnaco/Calvin Klein, Patagonia, Reebok, Swimwear Anywhere, and El
Corte Englese, as well as other well known retailers and designer labels. The
company's product line includes knitted briefs, bras, tank tops, boxers,
leggings, crop, T-shirts, nightwear, bodysuits, swimwear, beach wear and
active-wear.
