Recently Hampshire Group, Limited (OTCMKTS:HAMP) announced the results for 4Q2014. As per the reports, its net sales for the quarter declined on YOY, but overall gross profit remained stable.
Financial Results of 4Q2014 v/s 4Q2013:
The net sales of Hampshire Group, Limited (OTCMKTS:HAMP) for 4Q2014 was $28-$30 million as compared to the $35 million of 4Q2013. The net sales decreased slightly over the past 12 months due to market volatility and some quality issues, but it didn’t affect company’s gross profit margin. As per the reports, HAMP’s GP margin for the 4Q2013 was 16.6%, which elevated to 17%-18% in the 4Q2014. There were quite a few inefficiencies in HAMP’s operations including cancellation of orders in the previous year, which caused a total loss from operations of $9.2 million in the 4Q2013. It tried its best and lowered down the loss from operations to $1.8-$2.8 million in 4Q2014.
When it comes to earnings before interest, tax, depreciation and amortization cost, the company suffered a loss of $1.1 million in 4Q2013. In made some changes in the 4Q2014, and brought down the loss to $0.6-$1.5 million, a slightly better performance on average out basis. On the basis of these results, Hampshire Group, Limited (OTCMKTS:HAMP) now expects that its adjusted EBITDA loss for the entire 2014 year will revolve around $4.0-5.0 million as compared to the $9.1 million of 2013 year.
Earlier in the month of November, HAMP’s outlook suggested the adjusted EBITDA loss of $0.5-$1.5 million for FY2014 year, but the actual results came way above the management’s expectations. The main reason for this difference was the cancellation or delay in large retail orders in December. Customers denied accepting some of the orders because of poor quality, which affected overall loss projections. The management of Hampshire Group, Limited (OTCMKTS:HAMP) looks forward to improving its financial performance in the coming months.