American Apparel sales up in Q4, sees future in online biz
LOS ANGELES — American Apparel reported that its net sales for the fourth quarter were up 10% to $173 million and comparable-store sales rose 7% for the same period.
Net income for the fourth quarter of 2012 was $4.9 million, or 4 cents per common share on a fully-diluted basis, compared with net loss for the fourth quarter of 2011 of $11.2 million or 11 cents per common share.
Dov Charney, chairman and CEO of American Apparel Inc., stated, “We are pleased with our fourth quarter results that again show solid growth and continuing momentum in all business segments and almost all major geographies. Significant sales growth, operating expense control and the acceleration of leverage of our fixed costs allowed us to increase EBITDA performance to $17.8 million for the fourth quarter of 2012 from $9.1 million for the fourth quarter of 2011. For the full year, EBITDA increased to $36.6 million from $14.5 million in the prior year. Although we are pleased with this growth, we are focused on continuing to improve our financial performance. During this past year, we have carefully invested in systems and infrastructure to facilitate future growth."
Charney noted that one of the company's goal is to open 60 to 70 stores over the next three to five years. The company also intends to accelerate its online business, which represented 12.4% of total retail sales in 2012.