American Apparel Inc. reported a smaller loss in the first quarter and said a key revenue figure has improved in the current quarter and is expected to rise in the full year.

The Los Angeles apparel maker and retailer late Tuesday reported a net loss of $20.7 million (28 cents per share), compared with a net loss of $42.8 million (60 cents) a year earlier. Revenue fell 5 percent to $116 million.

Revenue at stores open at least one year, a much-watched indicator of a retailer’s financial health, was down 7.9 percent in the first quarter, but the company said same-store sales so far in the current quarter are flat – an improvement — and are expected to grow during the full year.

“Our first quarter financial results demonstrate early signs of recovery and our first quarter has historically been our least profitable quarter,” Chief Executive Dov Charney said in a statement. “Our key selling season is May through October and I believe our inventory assortment is well positioned. We achieved several key objectives in the first quarter despite financial challenges.”

American Apparel, known for its trendy casual wear and provocative marketing, has been closing lower-performing stores and otherwise cutting costs in the face of weaker sales and other financial issues. Last month it received a $14.2 million injection from a group of investors, led by Canadian financier Michael Serruya and Delavaco Capital, which averted a potential Chapter 11 filing. The investor group has the option to invest another $26.8 million in the company over the next six months.

The company said in a separate statement that it received notice from the NYSE Amex Exchange that it was not in compliance because one of its three directors on the audit committee had resigned. The company has until the end of October to replace him, which company said it plans to do.

Shares on Wednesday closed down 10 cents, or 7.8 percent, to $1.18.