ROBERT GRAHAM OWNER DIFFERENTIAL BRANDS SEES HIGHER Q3 SALES
Differential Brands Group Inc, the owner of Robert Graham, Hudson, and Swims, has announced financial results for the third quarter ended September 30, 2016.
For the third quarter of fiscal 2016, overall net sales were $41.2 million compared to $17.6 million in the same prior year period. The increase was primarily driven by the inclusion of $19.5 million from the addition of sales from Hudson and $3.5 million from the addition of sales from SWIMS, which the company acquired in 2016. Growth in the Robert Graham business was driven by the opening of three new retail stores since the prior year’s third quarter.
Overall gross profit increased to $20.3 million from $11.0 million in the same prior year period, and adjusted EBITDA was $1.8 million, compared to $1.2 million for 2015. However, the company did suffer a net loss of $2.8 million, or $0.22 per share.
“We were pleased with the progress we made in the strategic initiatives associated with each of our brands,” said CEO Michael Buckley. “At Robert Graham, we saw strong sell-through of our new fashion basics assortment in our retail stores. We continue to evolve our product offering to deliver distinctive fashion to our core customers and to expand our reach to a broader consumer base. At Hudson, we remain focused on building our Consumer Direct business as we bring our e-commerce business in-house and plan for the opening of our first retail location in the spring of 2017. At SWIMS, we remain on track with the integration process and expect to grow our business in the North American and international markets. Overall, 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.”
