WestPoint Narrows Net Loss in Second Quarter
NEW YORK-WestPoint Home reported a net loss of $5 million in its fiscal second quarter, compared to a net loss of $6 million in last year's second quarter.
According to a filing with the U.S. Securities and Exchange Commission by Icahn Enterprises, parent company of WestPoint Home, the textiles company posted a net sales decline of 23 percent, to $82 million in the quarter, which ended on June 30. The company's top line was weakened by the prevailing softness in the housing market, plus lost business including its exit from "certain unprofitable programs," the filing said.
The filing did not explain how the company managed to slim down its loss, except to say that it has been realigning its manufacturing operations to optimize its cost structure and would continue to do so. Gross margin, meanwhile, improved by 100 basis points to 9 percent in the quarter.
In saying that WestPoint would continue to realign its manufacturing, the filing said the company is "pursuing offshore sourcing arrangements that employ a combination of owned and operated facilities, joint ventures and third-party supply contracts. While current economic indicators project continued volatility with commodity and fuel costs, we cannot predict whether, or how long, current market conditions will continue to persist."