American Apparel Inc. Reports First Quarter Financial Results
American Apparel Inc., a Los Angeles-based vertically integrated manufacturer, distributor and retailer of branded fashion-basic apparel, announced financial results for its first quarter ended March 31, 2014.
Financial Performance Summary for the First Quarter of 2014
- Net sales decreased 1 percent to $137.1 million on a 7 percent decrease in comparable store sales and a 7 percent increase in wholesale net sales.
- Gross profit declined 1 percent to $72.0 million in the first quarter of 2014.
- Operating expenses decreased 5 percent to $79.5 million in the first quarter of 2014.
- Adjusted EBITDA improved by $2.1 million to $1.4 million for the first quarter of 2014 versus loss of $0.7 million for the first quarter of 2013.
"We are encouraged by our first quarter performance with our achieved results ahead of our 2014 business plan," said Dov Charney, CEO of American Apparel. "The results of our cost control efforts are being seen in all areas of the business and we are now fully focused on measures to improve top line performance."
Comparing the first quarter 2014 to the first quarter 2013, net sales decreased 1 percent to $137.1 million on a 7 percent decrease in comparable store sales in the retail and online business and a 7 percent increase in net sales in the wholesale business. The following delineates the components of the changes for the quarterly periods ended March 31, 2014 and 2013 as compared to the corresponding quarter of the prior year: Gross profit was $72.0 million for the first quarter 2014 versus $72.9 million for the first quarter 2013. Gross margin decreased to 52.5 percent for the first quarter 2014 versus 52.8 percent for the first quarter 2013. The decrease in the gross margin was primarily due to a relative increase in the mix of lower-margin wholesale net sales.