Broder Bros. pointed to higher gross margins, higher unit volumes and a double-digit gain in sales as the catalysts for a narrower loss for the period. Second quarter revenues were up 19.1% to $211.6 million for the quarter from $177.7 million in the prior-year period. The company narrowed its net loss to $6.0 million as compared to a loss of $14.8 million in 2009. Gross margins improved 110 basis points for the quarter to 18.1% of sales compared to 17.0% of sales in the first quarter 2009.
As a result of the uptick, Broder Bros regained lost market share, increasing unit volumes 23% compared to 11% growth for the overall market, according research the company reported. The growth in unit volume was partially offset by a 2% decrease in average selling prices.