THE RETAIL BULLETIN - The home of retail news
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
Interviews
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
American Apparel raises its forecast despite widening loss in Q2

US fashion retailer American Apparel saw its second quarter losses widen despite an increase in sales.

GENERAL MERCHANDISE

American Apparel raises its forecast despite widening loss in Q2

US fashion retailer American Apparel saw its second quarter losses widen despite an increase in sales.

The company has reported a net loss of $15.3 million, or 14 cents a share, in the quarter ended 30 June. This compares to a loss of $213,000, or flat earnings per share, in the same period a year earlier.

Revenue reached $149.5 million, up 13% from $132.8 million a year ago.
Same store sales in the quarter increased by 14% while gross margin narrowed to 52.9% from 54.5% due to planned promotional activities and the effect of "warehouse-type" clearance sale.

The latest quarter included a $1.4 million unrealized loss on the change in fair value of warrants and purchase rights, compared with a $13 million gain in the same period last year.

Dov Charney, chairman and CEO of American Apparel, Inc. said: "We are pleased with our second quarter results that again show solid growth and continuing momentum in all business segments and major geographies. Though the first two quarters are historically our slowest, significant sales growth allowed us to more than double our EBITDA performance to $7.6 million in the second quarter of 2012 from $3.7 million in the second quarter of 2011.

"In the second quarter we saw over 30% of our stores with sales growth in excess of 20% and as we continue to scale our operations and further implement store-level improvements, we believe we can raise the overall sales performance even further."

The retailer said it had employed a number of tactics to improve sales and profitability. These included tighter inventory management systems, continued store renovations, the building of  a new distribution centre  infrastructure, and the installation of traffic counters to improve customer conversions.

American Apparel is raising its adjusted EBITDA guidance for 2012 to between $36 to $44 million from the prior estimate of $32 to $40 million. It is also anticipating revenue of $604 million to $611 million, which is an increase on its previous estimate of  $570 million to $590 million.

The company operates around 251 retail stores in 20 countries, including the United States, Canada, Mexico, Brazil, United Kingdom, Ireland, Austria, Belgium, France.

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
The HR Summit 2019
The HR Summit 2019
Tuesday 8 October 2019
The Cavendish Conference Centre, London W1
The 11th HR Summit 2019, The Cavendish Conference Centre, London W1, 8 October 2019
AI in Retail Conference 2019
AI in Retail Conference 2019
16 October 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Digitally native competitors and demanding customers are forcing a new perspective in retail. AI and machine learning can help you step up to the challenges; and some ‘small and beautiful’ solutions can increase your conversion rates within just a few weeks.
Payment Roundtable 2019
Payment Roundtable 2019
6 February 2019
The Cavendish Conference Centre, 22 Duchess Mews, London W1G 9DT
The Retail Bulletin Payment Roundtable will raise debate and discussion centred on but not exclusive to improving the in-store payment process