American Apparel Reports Q3 Sales Gains
It's A 15% Year-Over-Year Increase
Counselor Top 40 supplier American Apparel (asi/35297) has announced its total third quarter sales rose to $162.6 million, a 15% year-over year increase. The company reported its retail and online sales gained an estimated 21% in Q3, while its wholesale net sales – which includes ad specialties – improved by about 6%. "I'm particularly encouraged by the strength of our full price business and overall unit sales, and excited that our retail segment growth compares against positive results from the prior year," said Dov Charney, American Apparel's CEO.
Wholesale revenues were especially strong for American Apparel in August, the company said, as the segment grew by 14% when compared to the same month in 2011. In September, while wholesale revenues increased by just 1%, American Apparel made its greatest gains in online sales, which grew by 19%.
American Apparel's third quarter financials continue a positive growth trend for the Los Angeles-based supplier. Earlier this year, American Apparel reported its wholesale revenues increased by 17% in Q1 and 10% in Q2. Charney expects further gains in the final three months of 2012.
"This past month aligned with our internal expectations, and we anticipate that both our retail and wholesale segments will experience continued sales momentum heading into October and the holiday selling season," he said. "Assuming our sales and EBITDA growth hold through the fourth quarter, we believe that we will be in a position to refinance our existing high cost debt and reduce our cost of capital."
Ranked as the 16th largest supplier in the industry by Counselor, American Apparel reported its 2011 North American ad specialty sales were $90.2 million, which represented a 1.8% year-over-year increase.