Sequential Brands narrows Q4 loss
New York-based brand management company Sequential Brands Group, Inc. announced a fourth-quarter net loss from continuing operations of $4.4 million, or $2.65 per diluted share, on Friday, compared to a loss of $7.9 million, or $4.87 per diluted share, in the prior-year period.
The group, which owns the Jessica Simpson, Gaiam, Avia and William Rast brands, among others, and also works with a range of licensees, reported $23.0 million in total revenue from continuing operations for the fourth quarter ended December 31, 2020. This represented a decline of 5.3% from $24.2 million in the same period in the previous year.
For the full fiscal year 2020, the group’s total revenue from continuing operations was $89.8 million, down 11.5% from $101.6 million in fiscal 2019. Annual loss from continuing operations was $88.1 million, or $53.54 per diluted share, compared to a loss of $34.3 million, or $21.21 per diluted share, in the previous year.
According to Sequential, the declines were related to the impact of the Covid-19 pandemic, which resulted in “a significant reduction in retail stores that remained open, as well as a change in consumer purchasing behavior for specific types of products. Both have led to a reduction in orders from retailers for certain types of products bearing some of our brands.”
The company further pointed out that the ongoing health crisis has adversely affected its projected long-term revenues, earnings, liquidity and cash flows. However, due to the rapidly evolving nature of the situation, the group said that it is not currently able to foresee the full impact of Covid-19 on its operations.
Copyright © 2023 FashionNetwork.com All rights reserved.