Sales Rose At Coconut Grove In Fiscal 2022

Sales at Coconut Grove, which encompasses the Intimate Apparel division of iFabric, surged in fiscal 2022, generating 7,021,621CD (Canadian dollars, about $5.137 million, at current exchange rates) compared to 4,054,319CD (about $2.966 million in fiscal 2021).

Meanwhile revenue at iFabric’s other major segment, Intelligent Fabrics, declined to 15,126,299CD (about $11.074 million), compared to 17,119,803CD (about $12.530 million) in the fiscal year ended September 30, 2021.

For the year, iFabric as a whole, recorded a loss of 452,456CD (about $331,000) on combined revenue of 19,743,008CD (about $14.450 million) compared to a profit of 2,375,006CD (about $1.738 million) on sales of 19,763,672CD (about $14.465 million) in fiscal 2021.

The company blamed the sales decline at the Intelligent Fabric division to the elimination in fiscal 2022 of a contract to produce “personal protective equipment,” (which had been in place in 2021), while the increase at the Intimate Apparel division came “as a result of the re-opening of retail stores in the United States and Canada following the relaxation of COVID-19 restrictions.”

iFabric blamed the annual loss on several factors including: “a decrease in gross profit dollars of 734,612CD or 9%, attributable to substantial [significant?] (sic) pandemic related increases in freight costs as a result of a shortage of shipping vessel capacity, as well as inventory write-downs and the product mix for the year;” an increase in “selling, general and administrative costs” that were “primarily due to laboratory and other fees,” and “increased personnel costs in respect of new hires made for the purposes of meeting the company’s future growth objectives and an increase in the allowance for doubtful accounts;” and “increased taxes in certain foreign subsidiaries and share based compensation costs.”

Explained CEO Hylton Karon, “if not for the ongoing disruptions impacting global supply chains that resulted in supplier shipping delays during the year that were outside of our control, fiscal 2022 would have been another record sales year for iFabric. With a solid fiscal 2022 now behind us, we have entered into our new fiscal year 2023 with the largest starting order book for both our Intelligent Fabrics and Intimate Apparel divisions in the company’s history.” He added, “I am anticipating a substantial increase in top line revenues, bottom line profitability and an overall record year for the company in 2023.”

In recent months, iFabric has embarked on several initiatives including a new “direct-to-consumer brand,” Verzus All, which includes underwear for men and women, sports bras, leggings, socks and some other apparel. The fashions are sold on a company website and “our first company-branded retail location – at the 140-store Markville Shopping Centre near to our head offices in Markham, Ontario, Canada.”

The company is also engaged in a clinical trial for medical scrubs that utilize its pathogen-inhibiting fabrics that it hopes will provide “us with an important tool to further expand our reach in the medical market,” according to Karon. In addition, over the summer iFabric signed an agreement with The North Face for that company use its water-repelling technology in outdoor apparel, footwear and equipment.

And in May the Intelligent Fabrics division announced a license agreement that will allow it to use “the Roots trademarks in connection with the manufacture and distribution of men’s, women’s and children’s swimwear, to retailers and distribution channels approved by Roots, including Roots stores.” That retailer operates “over 100 corporate retail stores in Canada, two stores in the United States, and an e-commerce platform, www.roots.com, that serves over 55 international markets.” Roots also has “more than 100 partner-operated stores in Asia.” — NM