American Apparel Reports Fourth Quarter and Full Year 2008 Financial Results
Operating expenses for the year ending December 31, 2008 increased to 48.3 percent of net sales, versus 47.6 percent for the year ending December 31, 2007. Operating expenses increased due to higher payroll, rent and occupancy expense related to the growth in the number of retail stores from 182 as of December 31, 2007 to 260 as of December 31, 2008. Pre-opening expenses for retail stores were $10.3 million for the year ended December 31, 2008 versus $5.3 million for the year ended December 31, 2007. Operating expenses were also higher due to an increase in corporate expense of approximately $7.5 million, related primarily to an increase in accounting and professional fees as a result of American Apparel operating as a public company in 2008.