American Apparel First Quarter Sales Up, Wholesale Increases 17 Percent
American Apparel Inc., the vertically integrated manufacturer, distributor, and retailer of branded fashion basic apparel headquartered in Los Angeles, announced preliminary sales for the month and quarter ended March 31, 2012. The company reported that for the month ended March 31, 2012, total net sales increased 15 percent to $49.0 million when compared to the month ended March 31, 2011. Between the same periods, comparable store sales on a preliminary basis increased an estimated 21 percent and wholesale net sales increased an estimated 10 percent. For the quarter ended March 31, 2012, total net sales increased an estimated 14 percent to $132.7 million, comparable store sales increased an estimated 15 percent and wholesale net sales increased an estimated 17 percent.
"We are very pleased to report strong sales performance in March across all three distribution channels and these results substantially exceeded our expectations," said Dov Charney, chairman and CEO of American Apparel. "Careful planning to our inventory commitments, merchandising strategy, and product assortment helped to drive our continued momentum."
The following delineates the components of the estimated increases for each of the months and the quarterly period ended March 31, 2012, when compared to the corresponding months and quarter of the prior year:
Comparable Store Sales
Comparable Online Sales
Comparable Retail & Online
Wholesale Net Sales
Charney, who recently signed a new three-year contract with the company, added, "I would like to take this opportunity to reaffirm our guidance for EBITDA of $32 million to $40 million for 2012. As such, we believe we will be in a position to refinance elements of our higher cost capital structure and significantly reduce our interest expense by late 2012 or early 2013."