American Apparel Announces Q2 Financials
CEO Dov Charney Pleased With Strong Sales In 3 Divisions
Top 40 supplier American Apparel (asi/35297) announced yesterday that it increased its overall company revenues by 9% in the second quarter of 2013, including a 16% sales increase in its wholesale division. While the company's revenues continued to grow in the first half of 2013, its profits were impacted in the period by investments to upgrade certain aspects of the business.
For the second quarter, American Apparel reported adjusted EBITDA of $7.9 million, a slight increase from last year's $7.6 million, but it also suffered a net loss in the quarter of $37.5 million, a large jump from the net loss of $15.3 million in last year's comparable period. In its public filing, the company said its profit was negatively impacted by "costs associated with the transition to a new distribution center and other performance measures we took to improve our distribution operations."
Dov Charney, CEO of American Apparel, said the company is performing well in its retail, online, and wholesale divisions, and that it is positioned well for profit and sales growth in the future. "We are pleased with the continued strong sales performance in all three business channels," Charney said. "We are executing at the store level and in our manufacturing facility, and customer demand of our offering remains strong. While the transition to a new distribution center and other supply chain initiatives negatively impacted the quarter, we are committed to making the necessary investments to reduce costs and improve our operating efficiency over the longer-term."
American Apparel ranks as the 14th-largest supplier on Counselor's Top 40 list, after reporting 2012 North American ad specialty sales of $96.8 million, a 7.3% increase over 2011.