American Apparel Inc. Announces Comparable Sales for Quarter Ended September 2013
Los Angeles-based American Apparel Inc., a vertically integrated manufacturer, distributor and retailer of branded apparel, announced preliminary sales for the month ended September 30, 2013. Total net sales for September 2013 were $49.9 million, a decrease of 2 percent over September 2012. Comparable store sales for September 2013 decreased 6 percent, including an 8 percent decrease in comparable store sales in the retail store channel and an 8 percent increase in net sales in the online channel. Wholesale net sales increased 12 percent for the month as compared to September 2012. For the quarter ended September 30, 2013, total net sales increased 1 percent to $164.1 million, with a 2 percent increase in comparable sales and a 3 percent increase in wholesale net sales.
Dov Charney, chairman and CEO, commented:
"Our negative same store sales for the month of September were primarily a result of significant difficulties in the launch of our new distribution center at La Mirada, California, for which I take responsibility. A multitude of issues, including technical, planning, staffing and design and integration, resulted in distractions in various aspects of our operations, including store operations, manufacturing and product development.
"Whereas the new distribution center was supposed to be (and will become in the medium and longer term) a state of the art, best-in-class facility carrying the promise of reduced costs and faster order fulfillment, it has so far been an example of how technology--at least from a short term perspective--can sometimes work against the success of an organization. The good news is we are on track to get our distribution center in a place where it will help us build a stronger, leaner, larger and more profitable American Apparel over the next five to ten years. Despite our difficulties, I am proud that we were able to demonstrate healthy increases in sales in two out of our three sales channels, a testament to the fact that the American Apparel brand remains extremely strong and continues to resonate with consumers and wholesale buyers of clothing worldwide.