US: Distribution centre weighs on American Apparel FY
- FY sales up 3%
- Comparable sales climb 3%
- FY EBITDA to be in range of $7-9m
American Apparel faced challenges with its new distribution centre
Basic clothing retailer American Apparel Inc has recorded an increase in full-year sales but expects 2013 adjusted EBITDA to plummet as costs related to its new distribution centre weigh on earnings.
Sales in the 12 month period climbed 3% to US$634m, while comparable store sales, including online sales, also rose 3%.
The company, however, said it expects adjusted EBITDA for the year to the end of December to be between $7m to $9m as compared to $36.6m last year.
"The challenged implementation of our new distribution centre had a material negative impact on the company in terms of actual costs (estimated at $14.9m)," said CEO Dov Charney.
"Naturally, the disrupted flow of merchandise to our stores, wholesale clients, and online customers had an immediate negative impact on sales."
The company said it expects 2014 sales and costs, however, to be enhanced by the operation of the La Mirada facility.
"Although this was a painful and costly endeavour it was necessary in order for us to achieve the future productivity and growth potential associated with the American Apparel brand," Charney said.
For fiscal 2014, American Apparel is projecting sales between $634m and $658m based upon a flat to 4% overall increase in net sales. Adjusted EBITDA is estimated in the range of $40m to $50m.
Canadean's "American Apparel Inc. - Company Capsule" contains in depth information and data about the company and its operations. The profile contains a company overview, key facts, major products and...
Apparel & Non-Apparel Manufacturing in the United States industry profile provides top-line qualitative and quantitative summary information including: market size (value 2009-13, and forecast to 2018...
This report analyzes the worldwide markets for Swimwear and Beachwear both in Million Units and US$ Million by the following Product Categories: Men's Wear, Women's Wear, and Children's Wear. The rep...
Plimsoll’s Clothing Retailers (Global) analysis is the most definitive and accurate study of the Clothing Retailers (Global) sector in 2013. The report is split into two sections and uses both a writ...
- Why China 5-year plan won't change garment-making
- ‘Fixing Fashion’ one stitch at a time
- Navigating a turbulent sourcing landscape
- Jordan garment sector strong amid regional unrest
- Hungary offers a mix of strengths and weaknesses
- US Q3 in brief: Burlington Stores, Guess, Chico's
- German sustainable textile scheme heads to Vietnam
- Golden Lady creates a new man-made fibre
- China and ASEAN upgrade FTA
- 3D tool uses product data to shake up shopping
- Wearable technology: The future market potential for smart garments and e-textiles
- Practical Brand Sourcing Strategy
- Statistics: Trends in Global and Regional Man-made Fibre Production - 2015
- Myanmar's Garment Sector in 2015 - now with updated members' directory
- Trade and Trade Policy: The World’s Leading Clothing Exporters and Key Markets 2015