American Apparel Reports 5% Decline in March Comps

In Reports, What's New, Industry News by Jeff Prine

Limited edition prints from American Apparel's Natalie Du Pasquier collection

Limited edition prints from American Apparel’s Natalie Du Pasquier collection

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.



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