(Filed Under Financial and General Interest News). iFabric sales in the third quarter fell by 31% to C$2,284,507 (Canadian dollars) or about $1.75 million (at current exchange rates). Meanwhile the net loss for the three months ending June 30, 2019 jumped to C$646,819 (about $495,000), up from C$171,701 (about $131,000) in the same period last year.
Revenue decreased by 46% in its Intimate Apparel Division and revenue increased by 39% in its Intelligent Fabrics Division, according to the company. “The decrease in Intimate Apparel was primarily attributable to the discontinuance of sleepwear products as well as credits given to a major customer amounting to approximately C$450,000 in respect of a strategic initiative to boost future sales by recalling products for the purposes of refreshing packaging. These products will be reshipped in the next quarter. This decrease was partially offset by increased revenues in the Intelligent Fabrics segment resultant from new finished performance apparel programs.”
iFabric added that, overall, “The decrease in earnings was mainly as a result of lower sales and a lower gross profit contribution for the reasons stated above. Earnings were also impacted by costs associated with the closure by the company of its UK warehouse during the period, due to current retail uncertainty in the UK pursuant to the exit of the UK from the European market, and the continued weakening of the UK Sterling. Ongoing business with UK customers is being serviced from Canada.”
President and CEO Hylton Karon provided additional commentary along with the financials. “The current quarter saw the launch of our new patented Breastlift adhesive bra. This unique product was launched in 75 stores in the USA and Canada. Retail demand has been so positive; we have now expanded distribution to over 1,250 stores.”
He added, “Four new patents have been filed in the USA and Canada with respect to performance apparel. In addition, there are other concepts we are about to file additional patents for. We believe these novel additions will be instrumental in securing new business.”
“Our regulatory efforts with the EPA in USA, are in the final phase. We also recently initiated the regulatory process for Canadian claims. As in the U.S., there is presently no entity that has been able to secure health claims on textiles in Canada.”
“Some key agreements with high profile brands are up for renewal. We anticipate announcing these shortly, along with several new agreements which are in negotiation at present. These will cover both chemical and finished product sales.”
“Our own brand for performance apparel is expected to launch shortly, which is a very exciting new avenue of revenue and will allow for much higher margins on a direct to consumer basis. We are currently implanting our distribution system in the U.S. and will provide a further update in the near term.”
“On the heels of successful private label performance apparel programs, we have renewed our current lines and have received increased interest in other products with the same retailers as well as adding new retail partners to the equation for next year.”
“We are branching out with our technology division to not only supply chemicals but have added functional yarns as a new market segment. This allows for integration of technology in the yarn manufacturing phase, as opposed to the textile finishing stage, which provides substantial benefits to manufacturers and end users. We expect that this new strategy will reduce adoption timing for our global brand customers.” — NM
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