Home / Knowledge / News / Apparel/Garments / American Apparel expects 2013 adjusted EBITDA to plummet
American Apparel expects 2013 adjusted EBITDA to plummet
07
Mar '14
American Apparel, Inc., a vertically integrated manufacturer, distributor, and retailer of branded fashion basic apparel, provided financial results information. 
 
Preliminary unaudited financial results for 2013 are as follows: 
Sales: 
-Net sales of $634 million, an increase of 3%. 
-Comparable store sales including online sales, an increase of 3%. 
-Wholesale net sales of $180.7 million, an increase of 4%. 
 
Adjusted EBITDA: 
The Company estimates for the year ended December 31, 2013 adjusted EBITDA will be between $7 million to $9 million as compared to $36.6 million for the year ended December 31, 2012.
 
2014 Sales and EBITDA Guidance 
For 2014, we are projecting net sales between $634 million and $658 million based upon a flat to 4% overall increase in net sales. 
 
Adjusted EBITDA is estimated in the range of $40 million to $50 million. Capital expenditures are estimated at $12 million with a marginal number of new store openings. Raw material costs are estimated at current prices and foreign currency exchange rates are estimated to remain at current levels. 
 
According to Dov Charney, Chairman and CEO of American Apparel, Inc., "The challenged implementation of our new distribution center had a material negative impact on the Company in terms of actual costs as shown in the above table (estimated at $14.9 million). Naturally, the disrupted flow of merchandise to our stores, wholesale clients, and online customers had an immediate negative impact on sales. 
 
These disruptions impaired our ability to react to demand trends and properly plan production flows and resulted in production cost overruns and excessive overtime charges. However, the La Mirada Center has been operating as designed since mid-November. Our distribution costs have dramatically declined and in January they were substantially less than what we incurred last year. Although we expect to make further cost improvements, the vast majority of the needed cost reductions have already been implemented. 
 
We expect that 2014 sales and costs will be enhanced by the operation of the La Mirada facility. Although this was a painful and costly endeavor it was necessary in order for us to achieve the future productivity and growth potential associated with the American Apparel brand. 
 
Click here to view full results.

American Apparel

Must ReadView All

Apparel/Garments | On 1st Jul 2016

British retail wants govt to move quickly post Brexit

The British Retail Consortium (BRC) has said that following the...

Textiles | On 1st Jul 2016

India ranked 35th in World Bank’s logistics index

India has moved up from 54th place in 2014 to 35th in 2016 in the...

Apparel/Garments | On 1st Jul 2016

FY16 net income soars 15% at Nike

For fiscal ended May 31, 2016, net income at US based sports goods...

Interviews View All

Shawn Honeycutt
Bolger & O'Hearn

Which chemicals are likely to dominate the sustainable textiles industry?...

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Wendell Rodricks
Wendell Rodricks

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

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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
june 2016

F2F Magazine

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search