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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 THIRD QUARTER RESULTS
Anderson, South Carolina, November 3, 2005....Hampshire Group, Limited today
announced results for the third quarter and nine months ended October 1, 2005.
Net sales during the quarter were $123,592,000 compared with $116,104,000 for
the same period during the prior year, an increase of 6.5%. For the current
quarter, net income was $6,927,000, or $0.85 per diluted share, compared with
net income of $6,940,000, or $0.84 per diluted share during the third quarter of
2004.
During the first nine months of 2005, net sales were $220,305,000 compared with
$196,753,000 for the same period during the prior year, or a 12% increase. Net
income for the first nine months of 2005 was $8,659,000, or $1.05 per diluted
share, compared with net income of $5,393,000, or $0.65 per diluted share,
during the first nine months of 2004. The nine-month period of 2005 includes net
non-recurring income of $2,755,000 relating to a settlement with two former
employees of claims by the Company arising in respect to improper payments by a
former vendor of the Company to the former employees. The non-recurring income,
after provision for income taxes, contributed $0.34 to net income per diluted
share during the nine-month period.
In the third quarter, sales of related separates were strong, reflecting
increased sales of private label products to supplement the Requirements(R)
brand. Men's sweaters had a strong quarter in comparison with the prior year.
Sales of women's sweaters were reduced, but expenses were also reduced.
Just after the close of the third quarter, the Company acquired the David
Brooks(R) trade mark and inventory from Kellwood Company, and the David Brooks
staff joined Hampshire Group in a newly established division called Hampshire
Better Brands. The Company intends to build a niche position in the better
women's sweater and related separates business using David Brooks, a
well-established trade mark in the specialty store market. Net sales for the
business for 2006 are projected to be in the $12 million range.
Commenting on the third quarter and nine month results, Ludwig Kuttner, Chairman
and Chief Executive Officer, stated, "As we have been reporting for a number of
quarters, selling to the retailing industry is highly competitive and demands
the continued efforts of our team on design, value and service. We are pleased
to be reporting gains in sales and earnings despite this difficult environment."
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.
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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)
Nine Months Ended Three Months Ended
------------------- -------------------
Oct. 1 Oct. 2 Oct. 1 Oct. 2
2005 2004 2005 2004
-------- -------- -------- ---------
Net sales $220,305 $196,753 $123,592 $116,104
======== ======== ======== ========
Net income excluding non-recurring income $5,904 $5,393 $6,927 $6,940
Net non-recurring income 2,755 - - -
-------- -------- -------- --------
Net Income $8,659 $5,393 $6,927 $6,940
======== ======== ======== ========
Basic income per share -
Net income excluding non-recurring income $0.72 $0.66 $0.85 $0.85
Non-recurring income, net of taxes 0.34 - - -
-------- -------- -------- --------
Net income $1.06 $0.66 $0.85 $0.85
========= ======== ======== ========
Diluted income per share -
Net income excluding non-recurring income $0.71 $0.65 $0.85 $0.84
Non-recurring income, net of taxes 0.34 - - -
--------- -------- -------- --------
Net income $1.05 $0.65 $0.85 $0.84
========= ======== ======== ========
Weighted average number of
shares outstanding (*) Basic 8,180 8,142 8,155 8,118
--------- -------- -------- --------
Diluted 8,216 8,254 8,186 8,218
--------- -------- -------- --------
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(*) Adjusted for two-for-one stock split effective June 28, 2005.
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