WestPoint Home Posts $1 Million Net Income in Q3
NEW YORK-Reduced expenses and the exit from certain unprofitable programs resulted in WestPoint Home's first profitable quarter in some time.
The home textiles manufacturer's net income in the quarter, which ended on Sept. 30, was $1 million. Revenues totaled $47 million, down 13 percent and the result of the exit from those unprofitable programs, according to the 10-Q filing on the quarter from Icahn Enterprises, WestPoint's parent company.
The departure from those programs also reduced cost of goods sold, which bolstered gross margin by 500 basis points to 16 percent. Selling, general and administrative expenses were also slimmed, by 22 percent in dollars and by 178 basis points as a percentage of sales, to 14.9 percent.
In the 10-Q filing, Icahn Enterprises said it's difficult to predict if WestPoint's performance will continue to improve, given "the uncertainty and volatility in the macroeconomic conditions." The company also said WestPoint is continuing its efforts to realign its manufacturing operations and streamline its merchandising, sales and customer-service divisions.