Haggar Drops Trou

Haggar Corp. (Dallas) has announced a 1.8 percent decrease in net sales for the second quarter of 2003, but a 5.1 percent increase for the six months ended March 31, 2003.

Net income tumbled more than half in the quarter and the company suffered a net loss of $174,000 for the six-month period.

The men's apparel manufacturer and retailer reported that it incurred heavy costs during the second quarter on proxy-related expenses and for a legal settlement in conjunction with a lease dispute.

“We are excited about our strong sales performance and the success of our Haggar comfort fit waist pants,” said chairman and ceo J. M. Haggar III. “However, we continue to struggle with reduced margins, which are attributable to pricing pressures in the retail marketplace.”

“We are very pleased with the performance of most of the core segments of the business,” agreed president and coo Frank Bracken. “Our Haggar brand, the Claiborne brand and our Horizon Group (private label) all exceeded last year's sales for the six months year-to-date. Additionally, we have signed a license with Kenneth Cole Productions (LLC) Inc. (New York) for classification pants that we believe will more than equal the volume of the DKNY business.

“On the womenswear side,” continued Bracken, “we have launched Haggar comfort fit pants for women with strong retail success. We see this as a key to the future of our women's strategy.”

Haggar sells its brand through department stores such as JCPenney, Kohl's and Wal-Mart (its largest customers) and at more than 65 Haggar outlet stores. It makes lower-priced brands for mass merchandisers and offers private-label clothing, and also owns women's apparel maker Jerell.