Superior Uniform Group, Inc. (Seminole, Fla.) blamed the bungled implementation of a new warehouse management system (WMS) for poor first quarter performance.
Sales for the first quarter dropped 6 percent, or $1.9 million, compared to the previous year.
"Our revenues and earnings were significantly affected by the January implementation of our new warehouse management system," said Michael Benstock, chief executive officer. "
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During the latter half of January and through the month of February, we experienced significant difficulty in shipping customer orders."
He noted that the company continued to improve the operating efficiency of the system, and that it had increased revenues by $900,000 during March compared to the same month of the previous year. First-quarter earnings dropped to $139,000 in the first quarter from $1.1 million in 2004 because of the revenue decline and the cost of employee overtime ($375,000).
"While the system is not yet operating at peak performance levels, we are seeing decreases in the overtime requirements and increasing revenue levels," Benstock added.
Superior Uniform, which reported total annual sales of $144 million in 2004, makes and sells a range uniforms and fashion accessories.
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