Broder Bros. Co. reported net sales for the first quarter ended March 26 were $173.9 million, up 13.3 percent from sales of $153.5 million for the first quarter 2010.
Net income for the quarter was $4.3 million compared to a net loss of $6.5 million for the 2010 first quarter. Broder management attributed the swing to profit to several factors, including the increase in sales and a focus on improved pricing and purchasing.
Broder Bros. also confirmed that its major suppliers announced two cost increase during the quarter – one in January and one in later-March or early-April. Management said Broder increased selling prices in response to the cost increases, but competitive factors has kept the company from passing along the full amounts of cost increases to the customer.
Among other results,Q1 gross margin was 19.8 percent of sales, down 230 basis points from 17.5 percent of sales last year. As noted, the company said the increase in gross profit was attributable to an increase in units sold and managements continued focus on improved pricing and purchasing activities.
