Yes Clothing Reports $4.7-Million Annual Loss

Yes Clothing Co. of Los Angeles, a troubled manufacturer whose stock price soared after the recent purchase of an 80% stake by former Guess Inc. Chairman Georges Marciano, said it lost $4.7 million for the 12 months ended March 31 and may go out of business.

Yes said it expects further losses for the first quarter because of “a continued pattern of lower shipping and reduced future bookings.” The firm’s auditor, Moss-Adams Accountants, intends to issue a qualified opinion on the company’s financial statements “due to its substantial doubt concerning the company’s ability to continue as a going concern,” Yes said in a statement.

“We are extremely disappointed in the results of the company for its most recent fiscal year,” said Irving Kroll, acting chairman of the Yes board. He said company sales for the fiscal year were substantially lower than anticipated and that overhead and other costs were substantially higher than expected.

“Without a substantial infusion of capital . . . the company may be forced to close its doors and liquidate its assets,” Kroll said.

Yes, which employs just over 100 people, said it is considering alternatives, including transactions with other companies controlled by Marciano. Marciano, who helped build Guess into an apparel giant, was not available for comment.

Yes, which has lost money for the last four years, appeared to be on the mend last December when Marciano announced his $6-million vote of confidence in the company, which makes moderately priced clothing for women, young men and girls.

Marciano followed up with several deal proposals--all now on hold--with his other companies involving the manufacture of high-end clothing and the rental of retail space to showcase Yes lines.

The company’s stock soared from $2 a share in early December to $10.50 in March before it began to slump. On Monday, the stock price plummeted to $1.75 in Nasdaq trading, down $2.875 a share.