Key Points – iFabric posted record first-quarter revenue of CAD 27.5 million, well above both last year’s comparable period and management’s prior guidance.
Growth was driven by strong performance in both Intelligent Fabrics and Intimate Apparel. – Margins improved meaningfully, with gross margin rising to 33% from 26% in the prior quarter and adjusted EBITDA reaching CAD 5.7 million
Management said higher Intimate Apparel sales helped offset the lower-margin product mix in Intelligent Fabrics. – Management highlighted strong inventory, receivables, and balance sheet trends, saying the company is positioned for continued growth as earnings convert to cash and debt declines. However, it declined to give detailed forward guidance because of a financing-related quiet period. iFabric (TSE:IFA) reported record quarterly revenue and improved profitability in its latest first-quarter results, with management pointing to new retail programs, expanded product placements and growth across both of its major divisions. Speaking on a post-results update call, Chief Executive Officer Hylton Karon said revenue for the quarter was CAD 27.5 million, up from CAD 7.1 million in the comparable period referenced by the company and ahead of prior guidance of CAD 20 million to CAD 25 million. “An absolute record for the company,” Karon said, adding that the result was slightly above the company’s earlier expectations.
Revenue in the Intelligent Fabrics division rose to CAD 23.6 million from CAD 5.8 million, while Intimate Apparel revenue increased to CAD 3.9 million from CAD 1.3 million. Karon said both figures represented records for the divisions. New Programs Drive Revenue Growth Karon said the Intelligent Fabrics business benefited from new scrubs and footwear programs, expansion of existing programs and organic growth in core lines.