American Apparel Reports Fourth Quarter and Full Year 2009 Financial Results
- Fourth quarter 2009 net sales of $158.1 million, an increase of 8.6 percent over the fourth quarter of 2008
- Fourth quarter 2009 diluted earnings per share of $0.04 vs. $0.05 for the fourth quarter of 2008
- 2009 net sales totaled $558.8 million, an increase of 2.5 percent over 2008
- 2009 diluted earnings per share of $0.01
- 2009 Adjusted EBITDA of $55.9 million
American Apparel Inc., Los Angeles, a vertically integrated manufacturer, distributor, and retailer of branded fashion basic apparel, announced its financial results for the fourth quarter and the year ended December 31, 2009.
American Apparel reported net sales for the fourth quarter ended December 31, 2009 of $158.1 million, an 8.6 percent increase over net sales of $145.6 million for the fourth quarter ended December 31, 2008. Total retail net sales increased 10.4 percent to $108.2 million for the fourth quarter of 2009 as compared to $98.0 million for the same period in 2008, with comparable store sales for stores open at least 12 months declining 7 percent on a constant currency basis. American Apparel ended the quarter with 281 stores, having added 21 net new stores during 2009. Total wholesale net sales, excluding online consumer sales, increased 6.1 percent to $38.5 million for the fourth quarter of 2009 compared to $36.3 million for the fourth quarter of 2008. Online consumer net sales remained relatively unchanged at $11.4 million for the fourth quarters of 2009 and 2008.
Gross margin for the fourth quarter of 2009 was 55.0 percent as compared to 54.5 percent for the prior year fourth quarter. Gross margin was favorably impacted by the depreciation of the U.S. dollar against foreign currencies in the fourth quarter of 2009 compared to the fourth quarter of 2008, and by a continuing shift in mix from wholesale to retail sales, which generate higher gross margins. These factors were largely offset by a substantial reduction in manufacturing efficiency at the company’s production facilities in the fourth quarter of 2009 compared to the prior year period. The reduction in manufacturing efficiency was principally a result of the forced termination of over 1,500 experienced manufacturing employees in the third and fourth quarters of 2009 following the completion of the previously disclosed I-9 inspection by U.S. Immigration and Customs Enforcement.