Home / Knowledge / News / Apparel/Garments / American Apparel comparable store Q1 sales rise 8%
American Apparel comparable store Q1 sales rise 8%
09
May '13
American Apparel, Inc., a vertically integrated manufacturer, distributor, and retailer of branded fashion-basic apparel, announced financial results for its first quarter ended March 31, 2013.

Financial Performance Highlights for the First Quarter of 20 13

-  Net sales increased 4% to $138.1 million on an 8% increase in comparable store sales and a 1% increase in wholesale net sales

-  Adjusted EBITDA improved by $1.4 million to a loss of $0.7 million from a loss of $2.1 million in the first quarter 2012

Operating Results - First Quarter 2013

Comparing the first quarter 2013 to the corresponding period last year, net sales increased 4% to $138.1 million on an 8% increase in comparable store sales in the retail and online business and a 1% increase in net sales in the wholesale business.

Gross profit of $72.9 million for the first quarter 2013 represented an increase of 4% from $70.1 million reported for the first quarter 2012. Gross margin remained unchanged at 52.8% for the quarters ended March 31, 2013 and 2012. Higher margins from an improved sales mix were offset by higher freight costs.

Operating expenses of $83.3 million for the first quarter 2013 represented an increase of 4% from $79.9 million for the first quarter 2012. As a percent of revenue, operating expenses remained unchanged at 60% for both quarters. The increase in operating expenses was primarily due to higher share-based compensation costs of $1.7 million.

Additionally, we incurred higher rent expenses of $1.6 million related to higher CAM (common area maintenance) charges and lease termination costs, as well as rent for our new distribution center and $0.8 million in higher expenses associated with RFID-related supplies and travel for other store refurbishment activities. This increase was offset by lower store payroll of $1.1 million and lower advertising expenses of $1.1 million.

Operating loss for the first quarter 2013 was $10.5 million compared to $9.8 million in the first quarter 2012.

Other expense for the first quarter 2013 was $35.6 million as compared with other income of $2.2 million in the prior year quarter.

The $37.8 million change in non-operating expenses was primarily the result of an increase in the market value of our outstanding warrants: the unrealized losses on the change in fair value of our warrants were $23.6 million and $0.7 million for the 2013 and 2012 quarters, respectively. Additionally, during the first quarter 2012, we recognized a gain on extinguishment of debt of $11.6 million.

Income tax provision in the first quarter 2013 was $0.5 million versus $0.3 million in the 2012 first quarter. In accordance with U.S. GAAP, we have discontinued recognizing potential tax benefits associated with current operating losses.

As of March 31, 2013, we had available federal net operating loss carry forwards of approximately $95.6 million and unused federal and state tax credits of $24.5 million.

Must ReadView All

Textiles | On 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search