Differential Brands Group: Q1 net sales drop 3 percent

Differential Brands Group Inc. has announced that total company net sales for the first quarter decreased by 3 percent to 38.8 million dollars, however consumer direct segment posted a sales rise of 12 percent. The company added that comparable retail stores net sales at both Robert Graham and Swims increased 16 percent driven by both full price and outlet stores contributing strong double-digit sales gains across the brands. Wholesale segment sales declined 8 percent as improvements at Robert Graham were offset by reductions at Hudson and Swims.

Commenting on the first quarter trading, Michael Buckley, the company’s CEO said in a media statement: “The consumer direct segment produces margins that are on average 27 points better than wholesale, thus we did not see as much margin erosion from the wholesale segment decline. We remain committed to test a retail store in the US for Hudson, and Hudson’s roll-out of sportswear is on schedule for fall 18’.”

Q1 gross profit reduces to 16.3 million dollars

Gross profit for the quarter was 16.3 million dollars compared to 18.6 million dollars in the first quarter of fiscal 2017. On a comparable basis, gross profit last year was 17.2 million dollars or 0.9 million dollars over the first quarter 2018, while gross profit margin on a comparable basis was 41.9 percent compared to 42.9 percent last year.

Adjusted EBITDA was 1.5 million dollars compared to 2.5 million dollars for the same quarter last year. Net loss and loss per share were 4.1 million dollars and 0.43 dollar per share respectively, compared to 2.4 million dollars and 0.28 dollar per share, respectively.

Picture:Robert Graham website