Home / Knowledge / News / Apparel/Garments / American Apparel blames market conditions for below par Q3
American Apparel blames market conditions for below par Q3
30
Nov '13
American Apparel, Inc., a vertically integrated manufacturer, distributor and retailer, known for its unique business model which gave it a certain amount of flexibility and unmatched turnaround times, has off late been struggling with out-of-stock items and high costs; the effects of which were visible in the disappointing earnings for the period ended September 30.

The Company reported a net loss for the third quarter of 2013 of USD 1.5 million, or USD 0.01 per common share, compared to Q3 net loss of 2012 of USD 19.0 million, or USD 0.18 per common share.

Excluding the non-cash and non-operating items from both periods, the net loss for the third quarter 2013 comes at USD 14.4 million, or USD 0.13 per share, compared to USD 5.7 million, or USD 0.05 per share, in the third quarter 2012.

For the three months ended September 30, 2013, net sales increased 1 per cent to USD 164.5 million on a 2 per cent increase in comparable store sales and a 2 per cent increase in wholesale net sales.

Adjusted EBITDA in the third quarter of 2013 decreased to USD 3.8 million from USD 13.3 million in the third quarter of 2012.

Commenting on earnings, Dov Charney, Chairman and CEO of American Apparel, Inc. said, “No question we had a rough 3rd quarter, although I think it is important to emphasize that most of the challenges we have faced were primarily technically oriented.”

The major reasons listed for the forgettable earnings were transition costs related to new distribution center, delayed product deliveries that led to items being out-of-stock in stores and a general slowdown in the sector in the USA.

However, Charney is confident in the American Apparel’s growth potential and is positive on the strength of its brand to succeed effortlessly in the market.

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 18th Aug 2017

Turkey imposes temporary duty on POY from 7 countries

Turkish ministry of economy has announced imposition of provisional...

Textiles | On 18th Aug 2017

GST return filing deadline for transitional credit

For businesses who want to avail the transitional input tax credit...

Apparel/Garments | On 18th Aug 2017

AEPC wants clarity on minimum wages for garment sector

The Apparel Export Promotion Council (AEPC) has urged the Indian...

Interviews View All

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Mohammad Hassan
Biax Fiberfilm

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

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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

August 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
66.7%
No
16.7%
Skip
16.7%

Total Votes: 30

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
43.3%
No
36.7%
Skip
20.0%

Total Votes: 30

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
83.3%
No
6.7%
Skip
10.0%

Total Votes: 30

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
60.0%
No
10.0%
Skip
30.0%

Total Votes: 30


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search