Home / Knowledge / News / Apparel/Garments / Q2 net sales at American Apparel tank 17.2%
Q2 net sales at American Apparel tank 17.2%
18
Aug '15
Net sales at clothing retailer American Apparel tanked 17.2 per cent year over year for the second quarter ended June 30, 2015.

In the three months to June 30, 2015, net sales dipped 17.2 per cent to $134.4 million from $162.4 million for the same period of 2014.

Excluding the year over year impact from foreign exchange and stores closed in 2014, net sales decreased 14 per cent from the same period in 2014.

“The decline in comparable sales was attributable to the lack of new style introduction for the spring and summer selling season,” the apparel retailer stated in a press release.

Net sales also declined approximately $3 million due to store closures and additionally, impact of foreign currency exchange rate changes contributed to the sales reducing around 4 per cent or $6.2 million.

Gross profit for the second quarter of 2015 fell 25.3 per cent from a year ago period to $61.5 million, while gross margin too slipped to 45.8 per cent compared to 50.7 per cent from the prior year second quarter.

According to the retailer, the dip was primarily related to lower retail sales coupled with negative effects of foreign currency exchange rate changes and an increase in workers compensation and health benefit costs.

Operating expense for the reporting quarter also contracted 10.2 per cent to $71.4 million as against 79.6 million in the previous year's same quarter.

“This was mainly due to lower payroll and reduced shipping, rent, supplies and miscellaneous activities, all primarily as a result of our cost reduction efforts,” the company informed.

Excluding the effects of the significant charges, operating expenses slid 12.8 per cent from the last year's second quarter to $65.1 million.

Net loss for the second quarter of 2015 was $19.4 million or $0.11 per share, compared to net loss of $16.2 million, or $0.09 per share for the second quarter of 2014.

Results for the reporting quarter include $8.3 million, or $0.05 per share, related to significant charges.

The company informed that under the $10 million "at-the-market" offering program, it may, offer and sell shares of its common stock having an aggregate gross sales price of up to $10 million.

As of June 30, 2015, it had issued 4 million shares of our common stock for net proceeds of $2.0 million and as of the same date, it had $6.9 million in cash and $38.4 million outstanding on its revolving credit facility. (AR)

Fibre2Fashion News Desk – India


Must ReadView All

Textiles | On 21st Aug 2017

GST payment & filing for July extended till Aug 25

The GST Implementation Committee, consisting of state and Central...

Textiles | On 21st Aug 2017

India’s cotton production may grow by 3.76% in 2016-17

India’s cotton production is likely to rise by 3.76 per cent to 345...

Textiles | On 21st Aug 2017

Telangana announces sops for textile, apparel sector

The Telangana government recently announced a string of incentives,...

Interviews View All

Headhonchos
Indian fashion industry

Organic the first choice of any environment-conscious person

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

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...

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
67.7%
No
16.1%
Skip
16.1%

Total Votes: 31

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
45.2%
No
35.5%
Skip
19.4%

Total Votes: 31

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
83.9%
No
6.5%
Skip
9.7%

Total Votes: 31

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
61.3%
No
9.7%
Skip
29.0%

Total Votes: 31


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