Differential Brands Group Inc. – a portfolio of global premium consumer brands comprised of Hudson Jeans, Robert Graham and SWIMS – has announced financial results for the first quarter ended on 31st March 2017.
The company’s sales increased by 19 per cent to US $ 40.1 million during the first quarter, while e-commerce sales grew 46 per cent on Y-o-Y basis. Its wholesale segment increased 22 per cent, whereas 9 per cent increase was noted in consumer direct segment sales.
According to the company, sales increased for the period primarily due to sales from the addition of the Hudson Jeans and SWIMS brands for the full period.
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Furthermore, gross profit increased to US $ 18.6 million in the first quarter, up from US $ 16.3 million during the same period last year. Hudson and footwear brand SWIMS sales contributed US $ 10.7 million of the company’s total gross profit.
On the other hand, gross margin of the company dropped to 46.6 per cent, compared to 48.5 per cent during the same period last year, mainly due to Hudson Jeans and SWIMS carrying lower gross margin rates due to the brands’ large wholesale businesses.
During the review period, Differential Brands Group saw a net loss from continuing operations of US $ 2.4 million compared to a net loss from continuing operations of US $ 5.2 million during the same period last year.
