Los Angeles—In what will be its last monthly sales report, American Apparel Inc. reported late Thursday that it posted a 5% decrease in its total comparable store sales.
The drop in its total comps included a 9% decline in comp sales for its retail store channel, “partially offset by a 16% increase in net sales” for its online channel.
Rebound in Online Sales
Wholesale net sales increased 11% for the month. On a preliminary basis, total net sales for March were $49.6 million, flat compared with March 2013.
For the quarter ended March 31, preliminary total net sales were $137.8 million as compared with $138.1 million for the same quarter last year.
“Comparable retail store sales for March largely reflect a later shift in the spring selling season from the later timing of Easter this year and the unseasonal cool temperatures throughout much of the country,” said Dov Charney, chairman/ceo. “We are encouraged by a rebound in online sales with an increase of 16% this year on top of a 24% increase last year. Our wholesale business continues to deliver solid growth with an 11% increase for the month and a 9% increase for the quarter.”
American Apparel has been trying to get its house in order after a costly new distribution center didn’t perform as hoped. The specialty retailer faced a cash crunch and an interest payment of $13.4 million this month.
Fortunately, FiveT Capital AG, a Swiss investment firm, took a stake in American Apparel staving off potential disaster. FiveT now holds a 13% stake in American Apparel, its largest shareholder outside of Charney.