Differential Brands Group, parent company to Hudson Jeans and Robert Graham, reported a successful second quarter, showing growth across sectors.
After boosting this year’s Q1 for Differential Brands Group, Hudson continues to be a light for the company, contributing to the company’s e-commerce growth.
“We are very pleased to have tripled our adjusted EBITDA as we continued to execute our strategic initiatives across all of our brands and channels during the second quarter of 2017,” said CEO Michael Buckley. “As we look ahead, we intend to continue making investments in our brands to expand our consumer reach and better capitalize on our strong digital presence. This will include major new ‘Fall 17’ and ‘Spring 18’ content and brand marketing campaigns at Hudson, which we expect to launch in late August this year, and a much expanded and market disruptive SWIMS product line, now showing, for ‘Spring 18’. Overall, we plan to continue building on our strong momentum and remain focused on further strengthening our platform over the remainder of the year.”
Net sales increased 13 percent to $36.5 million, compared to $32.4 million during the same period last year. Wholesale net sales grew 12 percent, which the company attributes to Hudson Jeans and Robert Graham, as well as sales from the addition of the Swims brand. Meanwhile, the consumer direct segment growth was driven by overall e-commerce sales growth of a whopping 38 percent. while consumer segment sales increase 15 percent.
Gross profit for Differential Brands Group reached $16.2 million in the second quarter, which includes around $0.8 million in gross profit from the Swims acquisition. The gross profit of $16.2 million is an increase compared to $12.5 million during the same period last year. Hudson’s wholesale gross profit increase came as a result of an increase in sales, and the outcome of a shift in sourcing. Meanwhile, Robert Graham gross profit also grew compared to the year before, due to an increase in sales and higher initial margins. The gross margin for Differential Brands Group was 44.5% compared to the same period last year’s 38.6%.