Adjusted EBITDA at NYSE listed, American Apparel, a marketer and retailer of clothing soared 38% year-on-year to $13.5 million in the third quarter ending September 30, 2014.
However, net loss for the third quarter of 2014 shot up massively to $19.2 million or $0.11 per share against net loss of $1.5 million, or $0.01 per share from the year earlier quarter.
“Third quarter of 2014 results includes $14.9 million, or $0.09 per share, related to unusual and non-recurring costs,” the apparel marketer explained.
Net sales for the third quarter of 2014 too slipped $8.7 million, or 5%, compared to the same period in 2013 from lower retail and online sales, partially offset by increased wholesale sales.
In the same quarter, comparable retail and online sales decreased by 7% and 5%, respectively, while wholesale sales increased by 2% over the same period in 2013.
Primarily due to lower retail and online sales volume, gross profit declined 2% to $82.5 million in the reporting quarter from $84.6 million in the corresponding quarter of 2013.
Gross profit, excluding unusual and non-recurring expenses rose to 53.5% of net sales from 52.2% in last year’s third quarter, due to dip in freight costs from start-up of its La Mirada distribution center.
Operating expense at American Apparel for the third quarter of 2014, stood at $92.6 million, compared to $89.1 million in the prior year quarter.
At the end September 30, 2014, inventories however reduced $18.4 million, or 11%, from December 31, 2013 at American Apparel.
As of September 30, 2014, the retailer had $9.4 million in cash, $27.0 million outstanding on its $50.0 million asset-backed revolving credit facility.
American Apparel reaffirmed previously issued guidance that adjusted EBITDA will be in the range of $40 million to $45 million for the twelve months ending December 31, 2014.
Interim CEO, Scott Brubaker said, "The strength of American Apparel's operating model is evident in the 38% year-over-year improvement in adjusted EBITDA.”
“We are proud to have achieved this growth during a period of company-wide operational restructuring and in a challenging macro-economic environment for retailers,” he added. (AR)
