Gross margins in Q1 FY23 were 12.7 per cent compared to 20.8 per cent in the prior year, largely driven by inflationary raw material costs and production curtailment expenses, the company said in a press release.

Selling, general, and administrative expenses in Q3 FY23 were $18.9 million, or 17.6 per cent of sales, compared to $17.5 million, or 15.8 per cent of sales, in Q1 FY22.

Operating income in Q1 FY23 declined year-over-year from $5.9 million, or 5.3 per cent of sales, to an operating loss of $2.59 million, or minus 2.4 per cent of sales. Net income declined from $3.6 million, or $0.51 per diluted share, to a loss of $3.6 million, or minus $0.51 per diluted share.

In the first quarter of FY23, the company spent approximately $2.1 million on capital expenditures, compared to $1.8 million in the prior year first quarter, focused on Salt Life retail store build-outs, additional equipment, and information technology, and manufacturing enhancements.

“We were pleased to deliver double-digit sales growth across four of our five main go-to-market channels and overall sales of $107 million for the quarter. Our Salt Life Group segment hit on all cylinders, delivering record first quarter sales fuelled by 17 per cent growth over last year and strong acceleration across direct-to-consumer and wholesale channels. The Salt Life team continues to do an excellent job of expanding the brand’s retail and digital footprints to remain accessible to its loyal and growing consumer following across the country,” said Robert W Humphreys, Chairman and Chief Executive Officer.

Fibre2Fashion News Desk (DP)