Differential Brands Group reports rise in Q3 net sales

For the third quarter of fiscal 2016, overall net sales at Differential Brands Group were 41.2 million dollars compared to 17.6 million dollars in the same prior year period. The company attributed increase in net sales to the inclusion of 19.5 million dollars from the addition of sales from Hudson and 3.5 million dollars from the addition of sales from Swims and growth in the Robert Graham business was driven by the opening of three new retail stores since the prior year third quarter.

Commenting on the company’s third quarter trading, CEO Michael Buckley said in a statement, “We were pleased with the progress we made in the strategic initiatives associated with each of our brands. We continue to make meaningful progress in positioning our brands for long-term, profitable growth. Looking ahead, we remain focused on growing our brands organically and acquiring new premium brands that are accretive and complementary to our portfolio.”

Third quarter growth driven by acquisition

Overall gross profit for the quarter increased to 20.3 million dollars from 11 million dollars in the same prior year period because of the addition of 10.3 million dollars in gross profit from the Hudson brand and 1.6 million dollars from the Swims brand. Overall gross margin was 49.4 percent compared to 62.3 percent in the third quarter of fiscal 2015, primarily as a result of the addition of the Hudson and Swims wholesale businesses.

Adjusted EBITDA was 1.8 million dollars compared to 1.2 million dollars in the same prior year period. Operating loss from continuing operations was 2.4 million dollars compared to operating income of 248,000 dollars in the same prior year period. Net loss was 2.8 million dollars or a loss per share of 0.22 dollar compared to net income of 36,000 dollars, for the third quarter of fiscal 2015.

Picture:Robert Graham