Net sales at clothing retailer American Apparel tanked 17.2 per cent year over year for the second quarter ended June 30, 2015.
In the three months to June 30, 2015, net sales dipped 17.2 per cent to $134.4 million from $162.4 million for the same period of 2014。
Excluding the year over year impact from foreign exchange and stores closed in 2014, net sales decreased 14 per cent from the same period in 2014.
“The decline in comparable sales was attributable to the lack of new style introduction for the spring and summer selling season,” the apparel retailer stated in a press release.
Net sales also declined approximately $3 million due to store closures and additionally, impact of foreign currency exchange rate changes contributed to the sales reducing around 4 per cent or $6.2 million.
Gross profit for the second quarter of 2015 fell 25.3 per cent from a year ago period to $61.5 million, while gross margin too slipped to 45.8 per cent compared to 50.7 per cent from the prior year second quarter.
According to the retailer, the dip was primarily related to lower retail sales coupled with negative effects of foreign currency exchange rate changes and an increase in workers compensation and health benefit costs.
Operating expense for the reporting quarter also contracted 10.2 per cent to $71.4 million as against 79.6 million in the previous year's same quarter.
“This was mainly due to lower payroll and reduced shipping, rent, supplies and miscellaneous activities, all primarily as a result of our cost reduction efforts,” the company informed.
Excluding the effects of the significant charges, operating expenses slid 12.8 per cent from the last year's second quarter to $65.1 million.
Net loss for the second quarter of 2015 was $19.4 million or $0.11 per share, compared to net loss of $16.2 million, or $0.09 per share for the second quarter of 2014.
Results for the reporting quarter include $8.3 million, or $0.05 per share, related to significant charges.
The company informed that under the $10 million "at-the-market" offering program, it may, offer and sell shares of its common stock having an aggregate gross sales price of up to $10 million.
As of June 30, 2015, it had issued 4 million shares of our common stock for net proceeds of $2.0 million and as of the same date, it had $6.9 million in cash and $38.4 million outstanding on its revolving credit facility.
