WestPoint Slims Fiscal-Year Loss
NEW YORK-WestPoint Home reduced its loss for the 2013 fiscal year to $16 million from the $27 million loss from the prior fiscal year, according to a filing with the U.S. Securities and Exchange Commission by owner Icahn Enterprises.
The filing said WestPoint improved its bottom line through its ongoing effort to exit unprofitable programs with retailers. This resulted in a 285 basis-point improvement in gross margin to 12.5 percent.
Selling, general and administrative expenses were down 16.2 percent in dollars but rose 62 basis points as a percentage of sales, to 16.9 percent.
Also because of the exit from unprofitable programs, WestPoint's net sales dived 19.3 percent to $184 million. The filing said WestPoint will continue its ongoing initiative to realign its manufacturing and streamline is merchandising, sales and customer-service divisions to improve its cost structure.
The filing gave no data on WestPoint's fourth-quarter performance.
"Given the uncertainty and volatility in the macroeconomic conditions, we cannot predict if (WestPoint's) financial performance will continue to improve," the filing said.