WestPoint Net Loss Narrows to $6 Million in 3Q
NEW YORK-Exiting unprofitable programs and reduced costs helped WestPoint Home slim its third-quarter net loss to $6 million from $13 million in the third quarter of last year.
The move away from those unprofitable segments, along with prevailing uncertainties about the economy as a whole, resulted in a 32.9 percent drop in net sales to $53 million, according to a filing with the U.S. Securities and Exchange Commission by WestPoint's parent, Icahn Enterprises. It also resulted in a 752 basis-point gain in gross margin, to 11.3 percent.
The company's ongoing cost-cutting efforts produced a 35.7 percent drop in selling, general and administrative expenses on a dollar basis. As a percentage of sales, SG&A fell 74 basis points to 17 percent.
While WestPoint has been getting its cost structure in order, it remains uncertain as to when its top line will begin to reverse its downward trend. The filing said, "Given the uncertainty and volatility in the macroeconomic conditions, we cannot predict if (WestPoint's) financial performance will continue to improve."