American Apparel Inc. Reports Fourth Quarter and Full Year 2012 Financial Results
Operating Results - Full Year 2012
Net sales increased 13 percent to $617.3 million on a 15 percent increase in comparable retail store and online sales and a 12 percent increase in net sales in the wholesale business.
Gross profit of $327.4 million in 2012 represented an increase of 11 percent from $294.9 million in 2011. Foreign currency effects were minimal for the year. Gross margin for 2012 was 53 percent as compared with 53.9 percent in 2011. The decrease in gross margin was due to the net sales impact of planned promotional activities and the effect of warehouse type clearance sales as part of our overall inventory reduction strategy, as well as moderated production in connection with our inventory turn improvement efforts.
Operating expenses of $326.4 million in 2012 represented a decrease of 520 basis points to 52.9 percent from 58.1 percent in 2011. Corporate overhead expenses decreased by $4.0 million from $45.8 million in 2011 to $41.7 million in 2012. The remainder of the decrease in operating expense is primarily due to fixed cost leverage as a result of increased sales.
The full release is available on American Apparel’s website.