Ennis Reports Quarterly Financials
Parent Company To Three Other Industry Suppliers
Top 40 supplier firm Ennis (asi/52493), parent company to industry suppliers such as Alstyle Apparel (asi/34817), Admore (asi/32050), and Star Award Ribbon Co. (asi/89195), reported yesterday that its sales increased by 5.9% in its most recent quarter. In the three months ended November 30, Ennis said that its revenues totaled $136.6 million, increasing from $129 million in the same time period last year. Further, the company said its revenues were essentially flat over the first nine months of its fiscal year – totaling $410.3 million this year and $409.9 million in the first three quarters of last year.
In its breakdown of its business groups for the time period, Ennis said that its print business was performing well while apparel is being impacted by pricing pressures. While print sales increased by 10.1% in the most recent quarter, apparel revenues fell by 1.1% even though apparel unit sales jumped by 5.5%. The difference, the company said, was a result of average apparel selling prices dropping by 6.6% in the period.
Overall, though, the company said its performance through the quarter and the first nine months of its fiscal year was positive. "We are pleased with our results for the quarter,” said Keith Walters, chairman, CEO and president of Ennis. “Our apparel results continued to improve as lower input costs of manufacturing and raw materials continue to favorably impact comparable operational results. Although we continue to make cost-side improvements, the apparel market continues to be extremely challenging, both from a volume and pricing perspective. During the third quarter, we faced increased pricing pressures due to competitors discounting. Whether this discounted pricing, which we believe is driven by a desire to maintain certain production volumes, will continue into the next calendar year or not is unknown. While the market continues to be challenging, we remain optimistic about the remainder of the fiscal year and the first part of next year."
Ennis ranks as the fifth-largest supplier in the industry, after reporting 2012 North American ad specialty sales of $235.3 million.