WestPoint Narrows Q1 Loss
NEW YORK-Continuing efforts to slim expenses helped improve WestPoint Home's bottom line in the first quarter, according to a filing with the U.S. Securities and Exchange Commission by Icahn Enterprises, the company's parent.
The company reported a net loss of $3 million in this year's first quarter, which ended on March 31, compared to a net loss of $9 million for the same period last year. WestPoint shaved 24 percent of its cost of goods sold, resulting in a gross-margin gain of 730 basis points to 10.9 percent. It also cut away 20 percent from its selling, general and administrative expenses--which, as a percentage of sales, fell 47 basis points to 17.4 percent.
Net sales fell 17.9 percent to $46 million. The sales drop was due to WestPoint's further moves away from unprofitable programs and customers, the filing said.
WestPoint will keep up with its efforts to streamline its manufacturing, merchandising, sales and customer-service operations. "Given the uncertainty and volatility in the macroeconomic conditions, we cannot predict if (WestPoint's) financial performance will continue to improve," the filing said.