American Apparel releases updated second-quarter results
For the three months ended June 30, the Los Angeles clothing maker and retailer reported a loss of $213,000, or flat earnings per share, compared with a loss of $14.7 million, or 21 cents, in the year-earlier period.
Sales were flat overall and at stores open at least a year. The latter measure, known as same-store sales, are considered an important gauge of a retailer's health because it excludes store openings and closings. The company reported preliminary second-quarter results, including sales performance, last month.
Chief Executive Dov Charney said sales trends were improving, with same-store sales up 3% in June and 4% in July.
After several difficult quarters that saw the company's stock and sales plummet, the company has been slowly working its way back to profitability. It faced a severe liquidity crisis in the spring but obtained new financing; the company also has appointed several new executives and directors, cut expenses and shut underperforming stores.
It recently announced a partnership with EBay to create the first full online lifestyle shop on the auction site, slated to launch next month. This week it said it had expanded its partnership with U.K.-based fashion site ASOS. And Charney is adding to his pursuits: He's one of the investors in the Cardinal, a soon-to-open Southern restaurant in New York's East Village.
American Apparel reported its updated second-quarter results after the markets closed on Monday. Its shares were little changed at 12:25 p.m. PDT on Tuesday.
-- Andrea Chang
Photo: An American Apparel store. Credit: Lawrence K. Ho / Los Angeles Times