American Apparel CEO pleased with recent sales momentum
08 Jul '11
3 min read
American Apparel Inc, a vertically integrated manufacturer, distributor, and retailer of branded fashion basic apparel, announced comparable store sales were flat for the second quarter of 2011 versus a decline of 16% reported for the same quarter last year. On an average US dollar basis the Company experienced a 5% increase due to the strength of certain international currencies.
In addition, online sales increased 19% when compared to the same quarter last year and wholesale sales declined 4%. Total sales for the 2011 second quarter were $132 million, essentially flat when compared to the same quarter last year. During the 2011 second quarter, the Company had an average of 256 stores in operation versus an average of 280 stores during the 2010 second quarter.
According to Dov Charney, Chairman and Chief Executive Officer, "We are pleased with recent sales momentum. In the month of June we recorded an increase of 3% in comparable store sales on a constant currency basis. On an average US dollar basis we experienced a 9% increase. Approximately 40% of our stores are located outside the United States.
On April 26, 2011, we announced we received $14.2 million in new capital from a group of private investors led by Canadian financier Michael Serruya and Delavaco Capital. This investment helped stabilize our capital structure and created positive sales momentum through prudent investments in product.
With a continued emphasis on improving manufacturing efficiency, and despite the effect of cotton price increases, we believe ours will be a story of improving sales, improving margins and improving EBITDA. Our focus will be to optimize product mix in stores, the in-store customer experience and the overall profitability of our store base."
Beginning for the third quarter 2011, the Company will report comparable store sales as the combination of sales for its comparable stores and online channel. On this basis, comparable store sales for the second quarter increased 2%, and for June 2011 the increase was 6%.
American Apparel is a vertically integrated manufacturer, distributor, and retailer of branded fashion basic apparel based in downtown Los Angeles, California. As of June 30, 2011, American Apparel had approximately 10,000 employees and operated 254 retail stores in 20 countries, including the United States, Canada, Mexico, Brazil, United Kingdom, Ireland, Austria, Belgium, France, Germany, Italy, Netherlands, Spain, Sweden, Switzerland, Israel, Australia, Japan, South Korea, and China. American Apparel also operates a leading wholesale business that supplies high quality T-shirts and other casual wear to distributors and screen printers.
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