Citing higher gross margins and higher unit volumes, Broder Bros. was slightly up in the first quarter of 2010, posting net sales of $153.5 million compared to $151.7 million for the first quarter of 2009. Similar trends followed on the profit side as the company narrowed its operating loss, down $3.6 million from 2009, as well as lower net loss of $6.0 million as compared to a loss of $14.8 million in 2009. Gross margins improved 100 basis points for the quarter to 17.5% of sales compared to 16.5% of sales in the first quarter 2009.
Following a three-part guarantee to customers in the third quarter of 2009, Broder Bros. seems to be living up to its proposed claims in that it would be in stock in key styles and colors, that it would fulfill orders accurately and that the company would not be undersold. In a company statement, Broder Bros. maintains that, “These guarantees continue to restore the confidence of the company's customers. In addition, management's initiatives to rationalize pricing, improve selling effectiveness and improve marketing communications appear to be contributing to the company's gross profit growth.”
Consistent with management's expectations, Broder sad it began to regain lost market share during the first quarter 2010. The company's unit shipments were 4% better than the prior year compared to a 3% increase in overall industry unit shipments.