NEW YORK–WestPoint Home’s fourth-quarter loss slimmed from $28 million in fiscal year 2008 to $18 million for the fiscal year just completed.
The home-fashions unit of Icahn Enterprises accomplished this in spite of a drop of 2 percent in net sales for the quarter, which totaled $105 million. The company’s gross margin increased by 210 basis points to 8.6 percent, and it reduced restructuring and impairment charges by 60 percent in the quarter. These factors offset an uptick of 5 percent in selling, general and administrative expenses.
For the fiscal year as a whole, WestPoint cut its loss to $71 million from $95 million in the prior fiscal year. Net sales decreased 13 percent to $369 million, but the company’s ongoing assault on SG&A and restructuring charges helped improve its bottom line for the year.
John Piazza, president and chief executive officer, said WestPoint will pursue these efforts in 2010 by incorporating lean manufacturing into its production, investing in new information technology, expanding its global sourcing and creating new transportation initiatives.
“We can cut our manufacturing costs in half,” with these efforts, Piazza said. “We hope to create linkages between our retail customers, forecasting and production through our investments. We will also be competitive by focusing on our brands and on innovation.”