Yes Clothing pounded by $300,000 3rd quarter loss

Yes Clothing Inc., a Los Angeles-based womens' garment manufacturer that went public in November 1989, has been ripped to rags on Wall Street.

In its third quarter, Yes reported a loss of $300,000 on revenues of $7.68 million, compared with a profit of $576,000 on revenues of $10.63 million in the year-earlier third quarter.

Torn by losses on the 27.8 percent decrease in third-quarter sales, Yes Clothing shares last week traded in the $2-a-share range, off 75 percent from the initial public offering price, and off 85 percent from the 52-week high of $13.25 a share.

An analyst said some Yes losses were attributable to start-up expenses incurred in the clothing company's venture into mens, kids and large-size clothes.

"The company continued its program to expand mens, kids and large-size division, and start-up costs took a toll on the quarter," said Thomas Tashjian, retail analyst with Seidler Amdec Securities Inc., the regional brokerage house based in downtown Los Angeles. "The management has chosen to stick with it, and not compromise a long-term strategy."

Seidler Amdec underwrote Yes Clothing's initial public offering.

Nevertheless, Tashjian said he could not put out a "buy" signal on Yes Clothing, even at $2 a share. "We are neutral on the apparel industry, and so we are neutral on Yes," he said.

Yes Clothing was founded in 1982 by George W. Randall, chairman, and Moshe Tsabag, president, who retain ownership of 77 percent of Yes Clothing shares.

Prior to going public, Yes Clothing had a great track record, growing to a profit of $2.25 million on revenues of $28.5 million in fiscal 1989, compared to a petite profit of $106,000 on sales of $8.04 million in fiscal 1985.

PHOTO : Randall: Chairman and co-founder of Yes

COPYRIGHT 1990 CBJ, L.P.
COPYRIGHT 2004 Gale Group