Alstyle Apparel is all about casual style. The company makes and markets clothing under several labels, including AAA Alstyle Apparel & Activewear, and Murina, as well as private labels. The company's products include t-shirts, tank tops, fleecewear, and infants' and toddlers' apparel. Alstyle Apparel operates several manufacturing facilities in Mexico, and its products are distributed from nine centers in the US, Canada, and Mexico. Alstyle customers are primarily based in the US and include mass marketers, screen printers, and embellishers. Alstyle is owned by business forms maker Ennis and accounts for more than a third of its sales.
California-based Alstyle Apparel does business primarily in the US. which accounts for 91% of its sales. Canada brings in the rest.
In addition to running three cut/sew facilities in Mexico, the company sometimes outsources production to businesses in El Salvador. Alstyle closed its manufacturing facility in California in 2011.
Sales and Marketing
About 98% of Alstyle's revenue is derived from t-shirt sales, of which 91% are domestic sales. Sales are primarily driven through 22 sales representatives, organized by territories in the US, Canada, and Mexico.
Like an all-cotton t-shirt in a hot clothes dryer, apparel maker's sales and profits are shrinking. In fiscal 2013 (ended January) sales declined $40.2 million versus the prior year, to $198.8 million. Indeed, sales have fallen 28% over the past two years due to soft market conditions, reduced retail and consumer demand attributed to the protracted and uneven economic recovery, lower inventory levels held by customers, and a drop in commodity prices and competitors' pricing strategies. Alstyle's profits have also declined from more than $77 million in fiscal 2011 to just $26.3 million in fiscal 2013.
Nonetheless, the company has reason to anticipate an improved future. Alstyle's expects sales volumes to improve as its selling prices and the cost of cotton in its inventories become better aligned, and an improved business environment spurs sales in fiscal 2014.
While no single customer accounts for more than 5% of its sales, Alstyle fancies itself as a staple in the skate, surf, and extreme sports industries. Customers include notable surf and skate brands who actively take advantage of the company's relabel and private label programs.