American Apparel Reports Q1 Financials
Total Revenue Of $137.8 Million
Counselor Top 40 supplier American Apparel (asi/35297) has announced flat year-over-year sales in the first quarter of 2014, reporting total revenues of $137.8 million. Despite gains in online revenues, comparative store sales decreased 5% in Q1. Wholesale revenues – which include sales within the ad specialty industry – continued a strong stretch for the California-based supplier, increasing year-over-year by 9% in the first quarter. “Our wholesale business continues to deliver solid growth,” said Dov Charney, CEO of American Apparel.
In March, American Apparel’s total sales were $49.6 million, unchanged from the same month in 2013. Again, the company’s wholesale segment generated the most success, with revenues that improved by 11%. Comparable store sales decreased 5% last month, although those declines were offset a bit by a 16% jump in net online sales.
“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,” Charney said. “We are encouraged by a rebound in online sales with an increase of 16% this year on top of a 24% increase last year.”
American Apparel’s recent weak retail performance, coupled with a troubled rollout of a new distribution center, left the company facing a cash crunch earlier this year, according to published reports. In the short term, though, worries over interest payments due and little cash on hand were alleviated when Swiss equity firm FiveT Capital AG bought more than 61 million shares of American Apparel’s stock, at 50 cents each, in March. The moved raised in excess of $30 million and made FiveT American Apparel’s largest outside investor. In a filing, FiveT pledged to take a non-passive role in American Apparel’s future that may include discussing strategy, management changes and transactions with the company and other shareholders.
Counselor ranks American Apparel as the 14th largest supplier in the industry, after the company reported 2012 North American ad specialty sales of $96.8 million.