Mossimo Posts $4.8-Million Loss
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IRVINE — Apparel maker Mossimo Inc., suffering lower sales and a glitch in its inventory system, said Tuesday that it lost $4.8 million, or 32 cents a share, for the third quarter.
The company had warned last week that it would post a loss on sharply lower sales. The company said it lost $700,000 from the flawed inventory system, which has been corrected. Mossimo also took reserves of about $2.2 million to reduce the value of some of its inventory and to discount some clothing prices for retailers. A year ago, Mossimo earned $2.3 million, or 15 cents a share.
Sales slumped more than 46% to $17.1 million from $31.9 million.
For the first nine months, the company reported a net loss of $5.3 million, or 35 cents a share, compared with net income of $10.2 million, or 69 cents a share, for the corresponding period a year ago. Sales totaled $59.7 million, down 27% from $81.9 million.
Mossimo also announced Tuesday that its chief operating officer, Eric Hohl, has resigned. The company said it is searching for a new president and chief operating officer to replace Hohl.
Mossimo announced last week that it is creating a new position of president.
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