American Apparel Narrows Second Quarter Loss

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Shares of American Apparel rose slightly Tuesday, a day after the Los Angeles apparel maker and retailer reported improved summer sales and a smaller loss in the second quarter.

The Los Angeles company late Monday reported a net loss of $213,000, about breakeven on a per-share basis, compared with a loss of $14.7 million (-21 cents) in the same period a year earlier. Revenue rose less than 1 percent to nearly $133 million.

Chief Executive Dov Charney said the bottom line was boosted by improved manufacturing efficiencies at its downtown plant, which more than offset higher yarn prices. The gross margin rose to 54.5 percent from 51.6 percent a year earlier.

The company said hot weather has been driving an uptick in summer same-store sales, which rose 3 percent in June at the end of the second quarter and were up 4 percent in July in the third quarter.

Charney also said that the company last month received $8.3 million in new capital due to share purchases completed in April, bringing to $22.5 million the amount raised in recent months from its main Canadian investor group.

“This additional capital will allow us to take advantage of improving business conditions in order to build upon our recent successes,” said Charney in a statement. “Together with our improved operating performance, this new capital makes us well positioned to strengthen our balance sheet.”

Shares closed up 2 percent to 90 cents on the NYSE Amex exchange

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