Home / Knowledge / News / Apparel/Garments / Q4 net sales down 9% at American Apparel
Q4 net sales down 9% at American Apparel
Mar '15
Net sales for the fourth quarter ended December 31, 2014 at NYSE listed clothing distributor and retailer, American Apparel, Inc were down 9 per cent year over year.

Net sales for the fourth quarter of 2014 declined 9 per cent from the prior year quarter to $15.6 million, due to lower sales in all three sales channels.

Gross profit in the reporting quarter too fell 9 per cent to $72.2 million from $79.5 million for the same period in 2013, primarily due to lower retail and wholesale sales volume.

Gross profit, excluding significant charges, increased to 52.2 per cent of net sales in the fourth quarter of 2014 from 47.5 per cent in the corresponding quarter of 2013.

Operating expense for the fourth quarter of 2014 stood at $84.0 million, compared to $90.7 million for the same period in the previous year.

Excluding effects of customs settlement and contingencies charges, the internal investigation of Dov Charney and employment settlement and severance costs, operating expenses declined 12 per cent year on year.

“The decrease in costs was due to lower payroll and lower costs related to our advertising and promotional activities from our ongoing cost reduction initiatives,” American Apparel said in a press release.

In the quarter under review, net loss climbed higher to $28.0 million or $0.16 per share as against $20.8 million, or $0.19 per share for the fourth quarter of 2013.

According to American Apparel, results for the fourth quarter of 2014 include $15.4 million, or $0.09 per share, related to significant charges.

While, results for the fourth quarter of 2013 included $4.2 million or $0.04 per share also, related to significant charges.

As of December 31, 2014, it had $8.3 million in cash, $34.3 million outstanding on its asset-backed revolving credit facility and $13.1 million of availability for additional borrowing under the facility.

As of March 13, 2015, American Apparel had $5.8 million of availability for additional borrowings under the facility.

On March 25, 2015, the apparel retailer entered into the Sixth Amendment to the Capital One Credit Facility which waived any defaults under the Capital One Credit Facility.

This was due to failure to meet the obligation to maintain the obligation to maintain the maximum leverage ratio and minimum adjusted EBITDA for the measurement periods ended December 31, 2014. (AR)

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 25th Apr 2017

Greater Manchester is high on its textiles industry

Greater Manchester is witnessing a boom in textiles industry with 77...

Apparel/Garments | On 25th Apr 2017

Foreign buyers paying less for green factory apparel

International buyers are not paying enough for apparel and garments...

Courtesy: Reliance Industries

Textiles | On 24th Apr 2017

Reliance’s FY17 revenue from petrochemicals up 12.2%

Increase in prices across polymers and polyester chain has...

Interviews View All

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

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...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Mike Hoffman
Gildan Activewear SRL

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

Bani Batra

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

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

April 2017

April 2017

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


Browse Our Archives


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