Small Q3 Loss At iFabric

As Q3 revenue fell 11% at iFabric in the third quarter, it reported a loss of 179,375 Canadian dollars (CD), which is about $128,000  at today’s exchange rates, compared to a smaller loss of 40,423CD (about $29,000) in the same period last year. Revenue for the period was 4,280,564CD (about $3.04 million) compared to 4,805,502CD ($3.4 million) in the three months ended September 30, 2023.

The Markham, Ontario based public firm operates two prominent divisions, Intelligent Fabric and Intimate Apparel, the latter of which utilizes the Coconut Grove and licensed Maidenform brand names, among others. Revenue at Intelligent Fabric “decreased by 29%” to 2,569,137CD [about $1.83 million] in 2024 “from 3,596,759CD [about $2.56 million] in 2023, attributable to the elimination of several low margin programs in Canada.”

“For the Intimate Apparel Division, revenue increased by 42% or 502,684CD to 1,706,177CD [about $1.21 million] in 2024 from 1,203,493CD [about $856,000]  in 2023, as a result of new programs for U.S. retailers.”

Despite the loss, CEO Hylton Karon cited “a notable increase in percentage gross margin” that, he promised, “sets the stage for a record fourth quarter, as the company continues to capitalize on growth opportunities and drive operational efficiencies” with “a robust order book and strategic initiatives underway.”

Karon added that “the previously announced fiscal year 2024 outlook, in the range of 28 million to 32 million [CD, about $19.91 million to $22.76 million], is on track to deliver a new record year for both revenue and profits, with revenue for Q4 anticipated to be more than 11 million [CD, or about $7.82 million]. The only current concern is the port strike in Vancouver, which would affect our Canadian deliveries. If it continues to the point that Q4 deliveries are delayed past December 31st, 2024, there will be a negative impact to Q4. However, any such delayed deliveries would positively impact Q1 of 2025.”

Over the past nine months, iFabric’s largest revenue source made a dramatic shift from Canada to the U.S. A chart provide with the most recent financial release showed that combined revenue from the U.S. totaled 6,746,179CD (about $4.80 million) compared to 5,767,489CD (about $4.10 million) from Canada. In the first nine months in 2023, however, Canada was the prominent revenue source for the firm at 8,892,759CD (about $6.32 million) compared to just 3,585,058CD (about $2.55 million from the U.S.).

iFabric also noted that “for the nine months ended September 30, 2024, approximately 53% of the company’s total sales were to four customers (2023 – 59%). Approximately 73% of the company’s total purchases were from four vendors (2023 – 84%).”

Above, a selection from the Maidenform Collection from the Coconut Grove division of iFabric.