Broder Reports 4th Quarter Loss
Trevose, Pennsylvania-based Broder Bros. announced its fourth quarter earnings for the fiscal year ending December 29, 2007. The company reported sales totaling $232.7 million, amounting to a $90 million fourth quarter loss—a downturn compared to the $240.9 million in sales and $300,000 profit reported for the same period for the 2006 fiscal year. Annually, the company had sales totaling $929.1 million, down just over $30 million from the prior year, amounting to a $124.1 million dollar loss.
Earnings reported include the companies three operating segments, the Broder, Alpha and NES divisions. While both the Broder and NES divisions had lower fourth-quarter sales, down $8 million and $1.8 million respectively, the company’s Alpha Shirt division reported a fourth-quarter revenue of $113.9 million, up $1.6 million from fourth quarter 2006.
All earnings come in light of a year in which Broder completed consolidation of its distribution centers—a move it believes will improve inventory accountability and customer service, albeit one that negatively affected financial performance in both 2006 and 2007. With the consolidation complete, and issues such as split inventory and product availability behind them, the company looks to regain its competitive advantage in the upcoming year.
For more information on Broder Bros., visit www.broderbros.com