Wholesale still weak for American Apparel

American Apparel said this morning that sales fell 2.9% to $150.3 million in the third quarter.

Net income was $4.2 million vs. $2.3 million during the same period last year.

In Q3 of 2008, however, net income was negatively impacted by stock-based compensation expenses.

Excluding those expenses, net income in Q3 of 2009 declined 79% compared to the same period last year.

Retail sales rose 3.7% to $101 million. Same-store sales declined 16% in constant currency. The company said the decline is largely attributable to the cannibalization of sales when it opens new stores in existing markets.

The company has opened 50 new stores in the past 12 months and ended the quarter with 276 stores.

Wholesale sales fell 14.5% to $40.2 million.

Online sales declined 12.5% to $10.4 million.

For the full year, American Apparel expects sales to range between $540 million to $555 million.