Mossimo Reassures Stockholders

IRVINE —  Mossimo Inc. on Wednesday used its first annual meeting--staged in the apparel company’s new warehouse--to assure shareholders that revenue and net profit will get back on track following a string of disappointing quarters.

“If you think I like waking up in the morning and seeing that number--that doesn’t work,” Chairman Mossimo Giannulli said in a reference to the company’s stock price, which plummeted to below $6 in recent months from a high of $50.125.

Giannulli and other company executives maintained that production and distribution problems that resulted in costly missed shipments during 1996 have been ironed out. They also said buyers are responding positively to new apparel and accessory lines that will go on sale next year in department and specialty shops.

About 100 shareholders and employees gathered near the loading dock of the company’s uncompleted warehouse in the Irvine Spectrum to hear results of cost-cutting and restructuring efforts that are designed to help restore the company’s financial performance.

“I’m not happy with the level we’re at,” Giannulli said. “This has been a trying time of late and the stock has not performed as we would have liked.”

While shareholders sought information about new product lines, including a fragrance line being developed in conjunction with Procter & Gamble Co., most seemed content with Giannulli’s prediction that the stock price would rise “if we demonstrate consistency and ship products on time.”

“The continuing challenge is to string together several good seasons,” said Chief Financial Officer Anthony C. Cherbak, who is leaving Mossimo next month to rejoin Deloitte & Touche LLP, his old employer. “And we can feel the momentum moving in our direction.”

In addition to the fragrance line that’s due in 1998, Mossimo has renewed efforts to develop trendy T-shirts aimed at younger customers. The market has softened in the last two years but is still an important source of profit for the company.

The apparel and accessories company also is introducing a wider array of optical wear, including a line that, like T-shirts, is designed for younger consumers.

During Wednesday’s meeting, which lasted less than an hour, shareholders elected Chief Operating Officer Eric R. Hohl to the company’s board.

Mossimo’s stock rose 37.5 cents a share to $7.75 Wednesday in New York Stock Exchange trading.