American Apparel Inc. Reports Second Quarter 2012 Financial Results and Raises EBITDA Outlook for 2012
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Some of the more significant tactics the Company is employing to improve sales and profitability include:
- Implementation of tighter inventory management systems through the RFID program. Approximately half of the stores are still to have RFIDimplemented.
- Continued store renovations to improve presentation and sales per square foot, with approximately 70 stores remaining to be renovated.
- Installation of traffic counters remaining to be completed in over half of stores to improve customer conversions. Full implementation of this technology is expected to be completed in 2013.
- The process to build a new distribution center infrastructure is underway and will improve the speed and accuracy of shipments to stores and will also significantly reduce operating expenses. Completion of this project is expected by early 2013.
Although these programs have a short-term cost, their completion will allow for further growth in sales and profit margins that fall in line with the industry. As EBITDA approaches the range indicated in the current outlook, the Company believes it will be in a position to refinance its high cost debt and it plans to do so in late 2012 or early 2013.
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- American Apparel
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