AMERICAN APPAREL, INC. REPORTS SECOND QUARTER FINANCIAL RESULTS
LOS ANGELES, August 18, 2014 - American Apparel, Inc. (the "Company") (NYSE MKT: APP), a vertically integrated manufacturer, distributor, and retailer of branded fashion-basic apparel, announced financial results for its second quarter ended June 30, 2014.
Financial Performance Summary for the Second Quarter of 2014
Net sales remained flat at $162.4 million compared to $162.2 million for the 2013 period on a 6% decrease in retail comparable store sales and a 9% increase in wholesale net sales.
Gross profit declined 2% and was $82.4 million compared to $83.9 million for the 2013 period.
Operating expenses decreased 7% and were $79.8 million compared to $85.8 million for the 2013 period.
Adjusted EBITDA increased 85% to $14.6 million compared to $7.9 million for the 2013 period.
Net loss was $16.2 million compared to $37.5 million for the 2013 period.
The Company now estimates Adjusted EBITDA will be in a range of $40 million to $45 million for the year.
The strength in the Company’s US Wholesale business offset the negative impact of the decrease in comparable store sales. Additionally, increasing efficiency in operations caused a significant increase in the Company’s EBITDA performance in the quarter from $7.9 million to $14.6 million even with sales being essentially flat between the two comparable periods.
Comparing the second quarter of 2014 to the second quarter of 2013, net sales were essentially flat at $162.4 million with a 6% decrease in comparable store sales in the retail and online businesses offset by a 9% increase in net sales in the wholesale business. The following delineates the components of the changes for the quarterly periods ended June 30, 2014 and 2013 as compared to the corresponding quarter of the prior year:
2014 Second Quarter
2013 Second Quarter
Comparable Store Sales
Comparable Online Sales
Comparable Retail & Online
Wholesale Net Sales
Total Net Sales
Gross profit was $82.4 million for the second quarter of 2014 compared to $83.9 million for the second quarter of 2013. Gross margin decreased to 50.7% for the second quarter of 2014 compared to 51.7% for the second quarter of 2013. The decrease was due to a shift in the sales mix from retail and online sales to lower margin wholesale net sales.
Operating expense was $79.8 million for the second quarter of 2014 versus $85.8 million for the second quarter of 2013. As a percent of sales, operating expenses decreased to 49.1% for the second quarter of 2014 compared to 52.9% for the second quarter of 2013. The decrease includes approximately $4 million in lower payroll and associated costs and $2 million in reduced advertising and marketing expenses. The reductions were largely a result of cost reduction efforts. In addition, share based compensation
The following information was filed by American Apparel, Inc (APP) on Monday, August 18, 2014 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: APP CIK: 1336545 Form Type:10-Q Quarterly Report Accession Number: 0001336545-14-000138 Submitted to the SEC: Mon Aug 18 2014 5:16:18 PM EST Accepted by the SEC: Mon Aug 18 2014 Period: Monday, June 30, 2014 Industry: Blank Checks