US: Distribution costs fuel American Apparel Q2 loss
- Q2 net loss US$37.5m, up from $15.3m
- Net sales rise 9% to $162.2m
- Wholesale revenues surge up 16%
Losses widened at American Apparel during the company’s second quarter, thanks largely to one-off costs linked to the transition to a new distribution centre.
Comparable store sales rose 9% and wholesale revenues were up 16% in the three months to 30 June, but the US company was hit by costs of $2.9m associated with changes to its distribution arrangements.
That led American Apparel to lower its full-year earnings guidance slightly, forecasting adjusted full-year EBITDA of $46-51m, down from the previous guidance of $47-54m.
But company chairman and CEO Dov Charney said: “We are pleased with the continued strong sales performance in all three business channels, particularly in light of the sales we believe we lost as a result of the supply chain issues we faced this quarter.
“We are, however, executing at the store level and in our manufacturing facility, and customer demand of our offering remains strong.”
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