Columbia SUPPLIES is down as Brown’s clothing lines lose sales in a market where retailers have long been more interested in expanding their brand presence than increasing profits.
The brand’s shares plunged nearly 10% in after-hours trading on Friday, a sharp drop from a day earlier, and were down more than $5 per share in after hours trading on Monday.
Brown’s stock is down about $1 per share since Thursday.
Columbias supply chain, led by apparel manufacturer Bossi, had said it was down 10% to $1.11 per share.
The drop has forced Brown to scramble to find new sources of supply, including a $100 million sale of a new, large factory in South Carolina.
The company said it expects to spend $2.5 million on a new factory that will double the size of its existing facility.
“We are working hard to ensure that the next phase of our business plan is ready to move forward,” Bossi CEO Chris Schulz said in a statement.
Brown has been battling supply problems in recent months.
The state has been forced to shut down factories after factories in South Dakota and Texas were shuttered, and the company has been hit with fines in Texas and South Dakota for manufacturing in Mexico and failing to report its wage costs on federal forms.
Brown also said it had to cut the number of workers it employs in California to 5,500 from the 10,000 it had planned to hire after a contract expired last month.
It has also been forced by a labor shortage to make changes to its supply chain.
In an interview with Bloomberg last month, Brown CEO Brian Murphy said the company would continue to build a stronger business and that the company was working with suppliers to help them meet the demands of its customers.
But that plan has not materialized.
“It’s very challenging for our suppliers to compete with these massive increases in apparel demand,” Murphy said at the time.
The loss of Brown’s manufacturing operations has also hurt Columbians’ chances of winning contracts for the rest of the season.
Columbo is expected to release its new uniforms for the 2017 season on Tuesday.
It is a brand that has grown in popularity since the late 1960s, when the company first debuted a new look with a darker color scheme and more black.
Colombias new uniforms have had some fans on social media, with some tweeting that they would be happy with a lighter version of the uniform.
Columo is also trying to win back consumers with a new line of clothing for women.
In January, it unveiled a limited-edition collection of women’s pants with a black and white motif.
The pants were also unveiled at the World Economic Forum in Davos.
The clothing line has also become a big seller among millennials, who like the brand’s casual look.
In May, Columbo posted its first quarterly sales report in seven years, reporting a revenue of $10.9 million.
But its stock has lost more than half of its value since then, down more to $8.95 per share after-tax.
The stock closed Thursday down $4.14, or 0.9%, at $3.98.
In a note to investors, Columbi said the apparel business has had its “challenges” and that it has been working with its suppliers to ensure the future of its business.
Brown and Bossi both had revenue of about $15 billion in 2016.
Brown had revenue in 2016 of about more than double the $10 billion it was planning to spend.
The combined company had revenue for the previous year of about four times the $8 billion Brown said it would spend.
Brown is also working to build out its new apparel factory in North Carolina, which is also expected to open in the fall.
The factory will double in size to 1,200 workers and double the amount of material it will use, said Columbian spokesman Eric Kowalski.
The North Carolina factory will make the apparel for Columbo and Bossis line, he said.