Exhibit 99.1 HAMPSHIRE GROUP, LIMITED STOCK SYMBOL: HAMP FOR IMMEDIATE RELEASE CONTACT: CHARLES W. CLAYTON PHONE: (864) 231-1211 FACSIMILE: (864) 225-4421 HAMPSHIRE GROUP, LIMITED ANNOUNCES FIRST QUARTER RESULTS Anderson, South Carolina, May 9, 2005....Hampshire Group, Limited today announced results for the first quarter ended April 2, 2005. Net sales were $58,077,000 compared with $54,397,000 for the same period in the prior year, an increase of 7%. Net income from operations was $748,000, or $0.18 per diluted share, compared with $147,000, or $0.03 per diluted share in the first quarter of 2004. The increases in sales and net income in the quarter are primarily attributable to the related separates business. In addition, the net income comparison was affected by $1.2 million charge ($720,000 after taxes) for incremental custom's charges for the first quarter of 2004. Because of the seasonality of the sweater business, which accounts for well over half of the Company's annual sales, results in the first quarter are not indicative of results for the full year. Commenting on the first quarter, Ludwig Kuttner, Chairman and Chief Executive Officer, stated, "We are pleased to have been able to increase sales in what has continued to be an extremely difficult retail environment. As we have reported many times, our outstanding team has a consistent focus on offering attractive merchandise to consumers while supporting retailers with quality products that provide good margins." Hampshire Group, Limited is a diversified apparel company, believed to be the largest supplier of women's and men's sweaters in North America and a leading supplier of women's related separates. - -------------------------------------------------------------------------------- Cautionary Disclosure Regarding Forward-Looking Statements This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that reflect the Company's current views with respect to future events. Such statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof. The Company undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrences of unanticipated events. Readers are also urged to review and consider carefully the various disclosures made by the Company in its Form 10-K and other Securities and Exchange Commission filings, which advise interested parties of the factors that affect the Company's business. HAMPSHIRE GROUP, LIMITED COMPARATIVE SUMMARY OF EARNINGS (in thousands, except per share data) April 2, April 3, QUARTER ENDED 2005 2004 - ------------------------------------------------------------------------------ Net sales $58,077 $54,397 Income from operations $994 $119 Net income $748 $147 Net income per share: Basic $0.18 $0.04 Diluted $0.18 $0.03 Weighted average shares Basic 4,103 4,077 outstanding: Diluted 4,125 4,204