Springs Finishes 2009 in the Black
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MONTES CLAROS, Brazil-Springs Global managed to show net income for both the fourth quarter and the 2009 calendar year, reversing losses for both periods.
Using the average conversion rate from the Brazilian real to the U.S. dollar for 2009, the company's fourth-quarter net income was $519,452, and was $19.8 million for all of 2009. Net sales for the quarter totaled $275.8 million, down 31 percent from the fourth quarter of 2008; while its net sales for the year were $1.2 billion, a decrease of 24 percent--again based on average currency conversion rates for both years. The bottom line for both periods benefited from an 8.5 percent reduction in general and administrative expenses, an $80 million booster from currency exchange variation and a 230 basis-point improvement in gross margin.
In a statement, Springs Global said the launch of the revamped Springmaid brand and the new Cindy Crawford collection "have started to show results." The company said it expects to benefit down the road from the coming debuts of the Diane von Furstenberg and Waterworks collections.