Like most apparel suppliers, Ennis Inc., which owns Alstyle Apparel, was negatively impacted by soaring cotton costs in 2011. The company is still processing cotton purchased at the inflated prices due to contracts signed at that time which locked the price for cotton at a rate higher than it is today. "In addition, pricing in the marketplace has not been consistent with these higher costs, thus putting additional pressures on apparel margins," Walters said. "Products are being sold in the marketplace at prices, in certain circumstances, less than the associated raw material costs. Our philosophy has always been to try to at least cover our costs in our pricing. Consequently, we feel this has and will impact our apparel sales in the short-term. Therefore, while fiscal year 2012 was challenging, we view fiscal year 2013 to be equally challenging, due to the high priced cotton overhang in inventories and current market pricing on the sell side."
- Companies:
- Alstyle Apparel