US: American Apparel raises forecast despite Q2 loss
- Q2 net loss of US$15.3m, up from $0.2m
- Net sales up 13% to $149.5m
- Raises FY EBITDA guidance
Troubled clothing business American Apparel posted a net loss of US$15.3m in the second quarter, but insisted its recovery plan is on track, increasing its full-year earnings forecast.
The US company has enforced tighter inventory management systems through an RFID programme and is in the midst of a store renovation process, with about 70 outlets still to be revamped.
It said it had recorded double-digit comparable store sales increases every month since last November, predicting a comps rise in the upper teens or lower 20s in percentage terms for August, with net sales set to rise by 10-15%.
In the second quarter ended 30 June, American Apparel recorded a retail comps increase of 14% and a 10% rise in wholesale revenues.
“We are pleased with our second quarter results that again show solid growth and continuing momentum in all business segments and major geographies,” said American Apparel chairman and CEO Dov Charney.
“Though the first two quarters are historically our slowest, significant sales growth allowed us to more than double our EBITDA performance to $7.6m in the second quarter of 2012 from $3.7m in the second quarter of 2011.”
The company is now predicting full-year EBITDA of $36-44m, up from its previous estimate of $32-40m.
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