Differential Brands Group Q2 revenue up 13 percent

Differential Brands Group net sales increased 13 percent to 36.5 million dollars in the second quarter, while ecommerce net sales grew 38 percent, leading to total consumer direct segment growth of 15 percent compared to the second quarter of fiscal 2016. The company’s gross margin expanded 590 basis points to 44.5 percent and adjusted EBITDA was 2 million dollars compared to 0.6 million dollars in the same period last year.

Commenting on the Q2 results, Michael Buckley, the company’s CEO said in a press statement, “We are very pleased to have tripled our adjusted EBITDA as we continued to execute our strategic initiatives across all of our brands and channels during the second quarter of 2017.”

Second quarter and H1 result highlights

The company said, wholesale increase in the second quarter was driven by growth at Hudson Jeans and Robert Graham, as well as by sales from the addition of the Swims brand. The increase in the consumer direct segment was led by overall e-commerce sales growth of 38 percent. In addition, the company said, comparable store sales in the Robert Graham business grew 5 percent, driven by both full price and outlet stores and comparable consumer direct growth was driven by improvements in conversion rates across the brands.

Total company net sales for the six months ended June 30, 2017 increased 16 percent to 76.6 million dollars, reflecting a 17 percent increase in wholesale segment sales and a 12 percent increase in consumer direct segment sales.

Gross profit for the quarter was 16.2 million dollars compared to 12.5 million dollars in the second quarter of fiscal 2016. Operating loss was 0.2 million dollars compared to 3.1 million dollars for the same period last year.

Gross profit in the first half reached 34.8 million dollars compared to 28.8 million dollars for the six months ended June 30, 2016. Total company gross margin was 45.5 percent compared to 43.7 percent for the six months ended June 30, 2016. Operating losses for the period were 0.5 million dollars against 4.9 million dollars in the first half of last year.

Picture:Robert Graham website