cut its fiscal 2005 outlook citing slowing denim sales and Kmart's decision to discontinue distribution of one of its brands. The company now expects full-year net income to range from $1 million to $2 million, down from previous guidance of $9 million to $12 million. Sales are anticipated to be $210 million to $215 million, down from an earlier forecast of $240 million to $250 million. Net sales came in at $155.5 million last year.
The reduced outlook is due to a lowered top-line sales estimate and on higher costs of Chinese imports, Tarrant said in a statement. The company also said that Kmart dropped its Gear 7 brand from stores, which will negatively affect fourth-quarter sales. Tarrant is actively looking for another distribution channel or retail alliance for the brand. The L.A.-based apparel company reports third quarter results on Nov. 10.
& #8226; The Gores Group acquired Scotland-based copper and fiber cabling manufacturer Brand-Rex Ltd. from Honeywell International Inc. Terms of the transaction were not disclosed. Brand-Rex makes cables for data communications. It has manufacturing resources in the UK, and sales and marketing bases in the UK, Germany, France, Italy, Spain, Scandinavia and the Middle East.
The Gores Group, an L.A.-based private investment firm focused on the technology, telecom and business services sectors, is run by Alec E. Gores, brother to Tom Gores, who runs Platinum Equity.
& #8226; DirecTV Group Inc. said it plans to launch its first original programming series, a weekly show called "CD USA." The show, which will debut in Jan. 21 for its 15 million U.S. subscribers, will feature seven live performances by popular recording artists including the Goo Goo Dolls, Sean Paul and Ben Harper. CD USA will also feature emerging and unsigned artists from the MySpace.com portal.
The El Segundo-based satellite TV provider boasted its move into programming would be "destined to have as much impact on the music business as the launch of MTV 25 years ago."
& #8226; Homestore Inc. signed a new two-year content distribution agreement with America Online Inc. According to the agreement, which replaces a previous one set to expire in December, Homestore will continue to provide its real-estate database for users of AOL's Real Estate Channel and for other areas of AOL.com. The Westlake Village-based company did not disclose specific terms of the agreement. The new contract is effective through Sept. 30, 2007.
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