Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : ASK: "THE LAST DON" OF MOMENTUM TRADES -- Ignore unavailable to you. Want to Upgrade?

To: Dave Gore who wrote (1698)	12/30/1998 1:41:00 PM
From: myturn	Respond to of 15987

WOOD is the one heating up!! Look for another strong gapper.

To: Dave Gore who wrote (1698)	12/30/1998 1:57:00 PM
From: MoneyMade	Read Replies (2) \| Respond to of 15987

ISAC--Sorry, but I'm hearing that sales for the 4th quarter were good. Also, under stand that ISAC is undergoing a RESTRUCTURING PLAN The Company has experienced increased competition in 1998 from a number of competitors, including the Tommy Jeans division of Tommy Hilfiger and the Polo Jeans division of Polo Ralph Lauren, at both the department store and specialty store channels of distribution. The Company believes that both Tommy Jeans and Polo Jeans have undertaken strategies that include massive consumer advertising, and the addition of sales efforts directed at specialty stores as a way to expand distribution. Other brands such as DKNY and Nautica have recently improved the jeanswear segments of their product lines. In addition, a number of new companies have emerged with competing products targeted at the urban young men's market. The Company has taken a series of steps to address this increasingly competitive environment for young men's jeanswear. First, the Company has positioned and merchandized its Girbaud-Registered Trademark- line of sportswear to offer jeanswear and sportswear products that are distinctive from a styling perspective. Second, the Company has restructured and expanded its BOSS young men's merchandising staff in an effort to develop product lines that are consistent with market trends and to present such lines to the market in a timely manner. In addition, the Company is implementing a restructuring plan designed to focus resources on the product lines with the greatest profit potential, in conjunction with significant expense reductions. In addition to the $1.1 million charge taken during the third quarter, the Company expects to take an additional charge of approximately $0.3 million in the fourth quarter relating to the closing of the Company's Carthage, Mississippi plant. The Company anticipates annual costs savings in the range of approximately $3 million to $4 million as a result of the restructuring. Key elements of the plan are as follows: - The Company will drastically reduce or eliminate product lines that are not currently profitable or do not have near-term profit potential. As a result of these initiatives, the Company's focus will be streamlined towards BOSS young men's, juniors and boy's, Beverly Hills Polo Club men's and boy's and Girbaud men's and women's sportswear lines. - With the exception of continuing its basic jeans and pants models for sale to major chain stores and catalogs, the Company will discontinue production of women's sportswear manufactured under its own brand names and under third party private labels. This initiative is consistent with the Company's overall shift towards brand-driven products. Net sales of women's Company-owned brands and third party private label lines totaled $2.2 million for the three months ended September 30, 1998. - The Company will discontinue its line of women's sportswear manufactured under the Beverly Hills Polo Club label in the U.S. and Europe and focus its energy on designing and marketing its Beverly Hills Polo Club men's and boy's collections. Net sales of Beverly Hills Polo Club women's sportswear totaled $0.5 million for the three months ended September 30, 1998. - In addition to eliminating its Beverly Hills Polo Club women's line, the Company will significantly reduce and modify its European men's line under the Beverly Hills Polo Club label. In January and February 1999, the Company will present a collection designed to be reflective of current trends in the European marketplace. - Going forward, the BOSS juniors line will be substantially reduced and will be more focused on core price point products with greater volume potential, such as jeans and tee-shirts. Net sales of BOSS juniors sportswear totaled $1.5 million for the three months ended September 30, 1998. - The Company has substantially cut the number of styles and SKUs offered in its continuing branded sportswear lines to reduce product development costs, selling expenses and inventory exposure. - The Company's Carthage, Mississippi manufacturing plantwhich is largely responsible for the production of women's pants and jeanswill be closed by the end of January. A portion of the production in this facility will be transferred to the remaining Company-owned plant in Raleigh, Mississippi, as well as to independent contractors in Mexico. The Company estimates annual cost savings of between $0.4 million to $0.7 million as a result of this closure. - The Company's advertising budget will be reduced to reflect the decrease in lines and more dollars will be allocated towards special events and point-of-sale advertising and promotions. The Company believes that this type of exposure provides the greatest benefit for its expenditures. There will be no reduction in the advertising budget to support growth of the Girbaud brand which includes a full print campaign including bill boards and buses. M$ney