GITANO GROUP REPORTS THIRD QUARTER RESULTS
GITANO GROUP REPORTS THIRD QUARTER RESULTS NEW YORK, Nov. 7 /PRNewswire/ -- The Gitano Group, Inc. (NYSE: GIT),
today announced, for the third quarter ended Sept. 30, 1991, net income of $3,848,000, compared to net income of $6,262,000, in the 1990 third quarter period. Net sales totaled $220,542,000 for the quarter, reflecting a 7.9 percent decrease from net sales of $239,489,000 recorded a year ago. Earnings per share for the quarter was $.24 based on 15,998,517 weighted average shares outstanding compared with $.40 per share based on 15,722,170 weighted average shares outstanding in 1990.
For the first nine months of 1991, Gitano's net income was $4,237,000, compared to $27,086,000 in 1990. Net sales decreased 7.8 percent to $591,961,000 from $642,066,000 recorded a year ago. Earnings per share totaled $.26 for the first nine months based on 15,998,392 weighted average shares outstanding compared to $1.85 last year, based on 14,659,671 weighted average shares outstanding. Haim Dabah, chief operating officer of The Gitano Group, Inc., said, "We are pleased with our return to profitability in this quarter. Reductions in sales were caused by the continuing weak retail conditions and deferrals of some shipments scheduled for the third quarter into the fourth quarter." Commenting further, Dabah said, "Although backlog positions for Spring 1992 are substantially ahead of last year, we remain concerned about retail prospects in the fourth quarter and its possible impact on earnings." The Gitano Group, Inc.'s primary business is supplying branded, high quality, affordable apparel to mass merchants and discounters. Gitano's products include fashion basic clothing for women, men and children, as well as intimate apparel and accessories. The average retail price of the company's apparel is under $20. Gitano licenses its brands for certain products such as socks, watches and athletic footwear. It also operates 104 company-owned retail stores at outlet locations selling Gitano products exclusively. The company's other brands include Gloria Vanderbilt, which is sold to moderate department and specialty stores, and Regatta Sport, which is sold to upscale department and specialty stores, and catalogues. With home offices in Manhattan, Gitano has 12 foreign offices and owns factories in the United States, the Caribbean basin and Central America, and manages a network of manufacturers and suppliers in over 35 countries throughout the world. THE GITANO GROUP, INC. Selected Financial Data (Unaudited) ($ in 000's, except per share data) Periods ended Three Months Nine Months Sept. 30 1991 1990 1991 1990 Net sales $220,542 $239,489 $591,961 $642,066 Cost of sales 161,326 178,252 440,122 465,925 Gross profit $ 59,216 $ 61,237 $151,839 $176,141 Pct 26.9 25.6 25.7 27.4 Selling, general & admin. expense $ 49,096 $ 45,741 $133,381 $120,371 Pct 22.3 19.1 22.5 18.7 Income from operations $ 10,120 $ 15,496 $ 18,458 $ 55,770 Other income -- -- -- 1,663 Interest expense 4,994 6,523 14,468 19,551 Income before provision for income taxes 5,126 8,973 3,990 37,882 Provision (benefit) for income taxes 1,278 2,711 (247) 10,796 Net income $ 3,848 $ 6,262 $ 4,237 $ 27,086 Earnings per share of common stock $0.24 $0.40 $0.26 $1.85 Weighted average shares outstanding 15,998,517 15,722,170 15,998,392 14,659,671 Note: Certain prior year expenses have been reclassified, without
net income effect, to conform to the 1991 presentation.
-0- 11/7/91 /CONTACT: Stan Greenstein, chief financial officer, 908-248-1220; or Gustave Birnberg, senior vice president, 212-564-6100, both of Gitano/ (GIT) CO: The Gitano Group, Inc. ST: New York IN: REA SU: ERN GK -- NY013 -- 2065 11/07/91 09:13 EST
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|Date:||Nov 7, 1991|
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