WestPoint Has Break-Even Q2
NEW YORK-WestPoint Home posted a break-even second quarter, the first time it has not posted a quarterly loss for some years, compared to a net loss of $3 million in last year's second quarter.
Net sales in the quarter, which ended on June 30, totaled $46 million, a decrease of 8 percent. However, gross margin gained 600 basis points to finish at 16 percent, with cost of goods sold lowered by increased margins on more profitable programs and customers. Selling, general and administrative expenses were dead even in dollars but rose 139 basis points as a percentage of sales, to 17.4 percent.
According to a 10-Q filing by Icahn Enterprises, WestPoint's parent company, the company "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.
"Given the uncertainty and volatility in the macroeconomic conditions, we cannot predict if (WestPoint's) financial performance will continue to improve," the filing added.