WestPoint shed sales in 1Q
HTT Staff -- Home Textiles Today, 5/9/2012 11:35:51 AM
New York - WestPoint Home streamlined its executive staff in the first quarter in order to lower costs and redirect its strategic efforts. It also saw sales drop 43%, a result of exiting unprofitable business, according to parent company Icahn Enterprises' first quarter report.
Sales for the quarter ended March 31 dropped to $56 million compared to $98 million in the year-ago quarter.
Gross margin tumbled 75% during the period, and the division reported a $9 million net loss. In last year's first quarter, the net loss was also $9 million.
WestPoint lowered its selling & general administrative expense by 38%.
In its filing with the Securities and Exchange Commission, Icahn Enterprises reported that WestPoint's top five customers accounted for 62% of first quarter business compared to 54% in last year's 1Q.
"WPH will continue to realign its manufacturing operations and streamline its merchandising, sales and customer service divisions to improve its cost structure and better serve its customers," Icahn Enterprises said in its filing. "Given the uncertainty and volatility in the macroeconomic conditions, we cannot predict when, or if, WPH's financial performance will improve."
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