• Q4 net loss widens to US$28m
  • Gross profit widens to 52.2%
  • Sales fall 9%
American Apparel said it is positioned for a solid turnaround of this business

American Apparel said it is positioned for a solid turnaround of this business

American Apparel said it remains focused on putting the right processes in place to grow the brand after widening its losses in the fourth quarter and revealing falling sales.

In the three months to the end of December, net losses amounted to US$28m, from a net loss of $20.8m in the year ago period. Results included $15.4m related to significant charges from its internal investigation, customs settlements and contingencies, and employment settlements.

Gross profit, excluding significant charges, widened to 52.2% of net sales in the quarter, from 47.5% in the prior year.

Sales were down 9% to $15.6m, primarily due to lower sales in all three sales channels.

CEO Paula Schneider, said: "Our fourth quarter year-over-year growth in adjusted EBITDA and reduction in operating expenses position us for a solid turnaround of this business. We remain focused on putting the right processes and systems in place-such as a rigorous forecasting process and disciplined bottom-up budgeting-so that we can better leverage American Apparel's strong brand."