Home / Knowledge / News / Apparel/Garments / American Apparel posts 9% dip in Q1 net sales
American Apparel posts 9% dip in Q1 net sales
14
May '15
Net sales for the first quarter ending March 31, 2015 slipped 9 per cent over the prior year first quarter at American Apparel, Inc., a manufacturer, distributor and retailer of branded fashion basic apparel.

An American Apparel press release informed that first quarter of 2015 net sales dipped 9 per cent to $124.3 million from $137.1 million for the same period in 2014.

“Excluding the year over year impact from foreign exchange and stores closed in 2014, net sales declined 4 per cent from a year earlier quarter,” the apparel retailer said.

First quarter of 2015 comparable store sales witnessed de-growth of 5 per cent, flat from the same quarter in 2014.

“Negatively impacting comparable store sales was a strategic initiative to reduce inventory levels by accelerating the sale of slow-moving merchandise in the retail stores,” the retailer added.

“This initiative shifted the merchandise mix in the retail and online stores towards clearance-related product,” it observed.

Gross profit for the reporting quarter plunged 34 per cent to $47.5 million from $72 million in the corresponding period of the previous year.

American Apparel attributed the decline to discounts given to reduce inventory levels by accelerating the sale of slow-moving inventory, foreign exchange impact and lower retail sales.

Gross profit, excluding significant charges however staged a turnaround to reach 42.0 per cent of net sales in the first quarter of 2015 from 52.5 per cent in the first quarter of 2014.

Operating expense for the quarter under review fell slower by 11 per cent from $79.0 million compared to $70.3 million from a year ago quarter.

According to the retailer, this was due primarily to lower payroll from its cost reduction efforts and reduced rent, supplies and miscellaneous activities.

Net loss for the first quarter of 2015 rose a massive 380 per cent to $26.4 million or $0.15 per share as against net loss of $5.5 million, or $0.05 per share for the first quarter of 2014.

“Results for the first quarter of 2015 include $9.5 million, or $0.05 per share, related to significant charges, American Apparel said.

As of March 31, 2015, it had $20.9 million in cash, $35.1 million outstanding on its asset-backed revolving credit facility and $11.2 million of availability for additional borrowing under the facility.

As of May 6, 2015, American Apparel had $5.2 million of availability for additional borrowings under the facility. (AR)

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 20th Feb 2017

UK textile & apparel exports up 7.05% in 2016: UKFT

The exports of apparel and textiles from the UK have increased by...

Textiles | On 20th Feb 2017

Himatsingka Seide incorporates subsidiary in Europe

Himatsingka Seide Ltd, one of the largest producers of home textiles...

Textiles | On 20th Feb 2017

IVL receives distinction for sustainability performance

Indorama Ventures Public Company Limited (IVL), one of the world’s...

Interviews View All

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Giorgio Mantovani
Corman S.p.A

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

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Mark Paterson
Technical Absorbents Ltd

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

Wendell Rodricks
Wendell Rodricks

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

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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
February 2017

February 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