Centric Brands Q3 net sales drop 6 percent

Centric Brands Inc. formerly known as Differential Brands Group Inc., for the three months ended September 30, 2018 reported total net sales decrease of 6 percent to 39.8 million dollars. The company said in a statement that somewhat offsetting a wholesale segment net sales decline of 12.3 percent in the quarter was strong 13.6 percent net sales growth in the consumer direct segment.

Within the wholesale segment, Robert Graham and Hudson net sales declined 10.9 percent and 18.1 percent, respectively, while Swims registered a growth of 10.1 percent. The consumer direct net sales growth in the quarter included ecommerce net sales growth of 20.6 percent and 9.4 percent jump in retail stores net sales, which were led by outlet store net sales growth of 13.8 percent and full price store net sales growth of 5.9 percent.

The company added that initial gross profit margins increased 1.2 percent during the third quarter to 52.1 percent from 50.9 percent in the same quarter last year driven from a higher penetration of full price business. Gross profit declined approximately 900 thousand dollars as a result of overall sales volume declines. Adjusted EBITDA for the quarter dropped to 2,302 million dollars compared to 3,160 million dollars for the same quarter last year.

Picture:Facebook/Robert Graham