American Apparel has reported it expects that last year’s revenue will be higher than the year before but pre-tax earnings will be much lower.

The Los Angeles clothing maker on Thursday released its preliminary 2013 financial results Thursday. The company said net sales are expected to be up 3 percent and same-store sales up 5 percent.

However, the company said that pre-tax earnings are expected to be between $7 million to $9 million, compared with $36.6 million than 2012.

Dov Charney, chairman and chief executive of American Apparel, said that problems associated with its new distribution center in La Mirada and increased productions costs have hurt the company.

The company recently hired lawyers from Skadden Arps Slate Meagher & Flom in New York to help it restructure last month. Company bondholders also began seeking advice from restructuring experts.