American Apparel losses narrow on improved second-quarter sales
American Apparel Inc. had a narrower loss and improved sales in its second quarter, the Los Angeles clothing maker and retailer said in an updated earnings filing.
For the three months that ended June 30, the company reported a loss of $213,000, or flat earnings per share, compared with a loss of $14.7 million, or 21 cents, in the year-earlier period.
Sales were flat overall and at stores open at least a year. The latter measure, known as same-store sales, is considered an important gauge of a retailer’s health because it excludes store openings and closings. In its second quarter last year, year-over-year same-store sales declined 16%.
Chief Executive Dov Charney said sales trends were improving, with same-store sales up 3% in June and 4% in July. Second-quarter online sales rose 23%.
After several difficult quarters that saw the company’s stock and sales plummet, American Apparel has been slowly working its way back to profitability.
It faced a severe liquidity crisis in the spring but obtained new financing; the company also has appointed several new executives and directors, cut expenses and shut underperforming stores.
The company recently announced a partnership with EBay Inc. to create a full online lifestyle shop on the auction site, slated to launch next month.
American Apparel reported its updated second-quarter results after the markets closed Monday; it had released preliminary results, including sales performance, last month. Its shares rose two cents, or 2.3%, to close at 90 cents Tuesday.
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