So we’ve had very good visibility for the remainder of the year for both price and costs as I said. Cotton costs are locked through December. And we’ve confirmed pricing with our retailers for over 95% of our expected U.S. volume. And finally we’re making good progress on de-risking our balance sheet.
Our inventories have peaked for the year and as they decline they will begin to generate substantial cash. We remain firmly committed to using that cash to pay down debt for the rest of 2012 and 2013.
So to sum up, the largest margin impacts of cotton inflation, the supply chain realignment and the operating losses associated with Imagewear are now behind us. Therefore, as planned our operating margins for the rest of the year should return to a more normal average of low double digits.
I’ll now turn the call over to Bill to give you a little bit more detail. Bill?Bill NictakisThanks, Rich. We saw a solid performance in our core domestic retail categories in both Innerwear and Outerwear segments during the first quarter. Our consumers and retail partners continue to prefer our leading brands as evidenced by retail sell through in the first quarter that was at or better than planned and the continued increases in shelf space that we have achieved across our businesses.Let me touch on a few highlights for the quarter starting with Innerwear, and first let me discuss price. The short answer is that the pricing strategies and tactics that we have implemented are meeting or exceeding both our expectations and those of our customers.Read the rest of this transcript for free on seekingalpha.com
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV