Dan River profits soar in home, but 2Q may be tough

Danville, VA — With profits more than doubling in its core home fashions business as margins gained strength, Dan River Inc. posted a $2.8 million first-quarter profit, compared with a $25.8 million loss the year before, when the company took a hit on the Kmart bankruptcy and recorded a $21 million non-cash accounting charge.

But the good news was forgotten fast when the company warned that the sales outlook remains clouded. It said it will record a small loss during the second quarter as it adds up all of the costs tied to a recently completed refinancing that will ultimately provide the company with more breathing room.

Earnings improved sharply despite a shortfall in sales in each of the company's operating segments. Home fashions operating profits more than doubled, climbing by 117.9 percent, to $11.5 million from $5.3 million last year. Sales declined by 6.5 percent, to $108.4 million from $116.1 million.

The crystal ball remains clouded, however. "The uncertainties imposed by the soft economy, high unemployment and the war in Iraq have depressed consumer spending," said Joseph Lanier Jr., chairman and ceo. "This is reflected in the negative same-store sales comparisons reported by most retailers. In reaction, our customers are very skittish about placing new business and are very conservative in their order quantities."

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Featured Video

  • Live From New York: Fashion Comes Across the Pond

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.


HTT Cover October 2017

See the October 2017 issue of Home & Textiles Today. In this issue, we look at the Top 25 Online Retailers.  H&TT's exclusive annual ranking of the biggest online sellers of home textiles finds that while pure play etailers continue to fly, bricks & clicks are digging into omnichannel. See details!