American Apparel Inc. Reports First Quarter Financial Results

Operating Results
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.