American Apparel Inc. reported its second straight quarterly loss as the apparel maker and retailer was hurt by a 10 percent decline in revenue. The results fell short of analyst forecasts.

Late Tuesday, the Los Angeles company reported a third quarter net loss of $9.5 million (-13 cents per share) compared with net income of $4.2 million (5 cents) a year earlier.

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Revenue fell 10.5 percent to $134.5 million as comparable store sales declined. Gross margins fell from 58.1 percent to 52.2 percent, in large part due to increased production costs.

Analysts surveyed by Thomson Reuters on average expected a per-share loss of 5 cents on revenue of more than $147 million.

The company hopes to improve its performance with an initiative that will both speed distribution and lower its costs.

“I have seen reinvigorated interest in our brand and our customers are recognizing us for our new products,” Chief Executive Dov Charney said in a statement. “We plan to continue driving sales of our basics as we align product design and development with more efficient manufacturing.”

Shares earlier closed down 5 cents, or 4 percent, to $1.14 on the New York Alternet.