Sponsors
Billabong ▼ -0.005 | PPR - 0 | American Apparel ▼ 0.000 | The Buckle ▲ +0.66 | Columbia ▲ +0.36 | Deckers Outdoor ▲ +1.92 | Dicks ▲ +0.78 | Foot Locker ▲ +1.03 | Genesco ▲ +1.62 | Iconix Brand Group ▲ +0.72 | Jarden Corp ▲ +1.48 | Nordstrom ▲ +1.57 | Luxottica ▲ +0.29 | Nike ▲ +1.74 | Pacific Sunwear ▼ -0.01 | Skullcandy ▲ +0.08 | Sport Chalet - 0 | Urban Outfitters ▲ +0.05 | VF Corp ▲ +2.71 | Quiksilver ▲ +0.07 | Zumiez ▲ +1.26 | Macys ▲ +1.31 | Tillys ▲ +0.26 |
Readers Say
In touch with our business
In touch with our business

If you're not plugged into Shop-Eat-Surf.com daily, you're out of touch with our business!

- By Peter "PT" Townend, The ActivEmpire
Executive Edition is a must have
Executive Edition is a must have

Before Shop-Eat-Surf, there were two sites I paid for premium content on. One is Surfline, the other is the Wall Street Journal. One is about all things surf, the other, the best business content site in the world. Shop-eat-surf is the intersection of those two worlds. Shop-Eat-Surf provides everything from coverage of events, people, brands and trends. However, beyond the Executive Edition "wall" is more meaty analysis and interpretation of financial statements, business models and brand philosophies; why certain brands and companies are succeeding, where others aren't. The Executive Edition is a must have read if the business of surf and action sports are on your radar screen.

- By Jeff Berg, Co-owner, Surfline
Industry Insight

SDSI recaps FundSource OR success. Four reasons for B2B companies to embrace ecomm from NuORDER.

Details on Industry Insight.


Tiffany Montgomery
Print This Article

American Apparel stock down after manufacturing issues

By Tiffany Montgomery
March 26, 2010 6:20 AM

By TIFFANY MONTGOMERY

American Apparel’s stock price was down nearly 10% in premarket trading this morning after the company declined to provide guidance for 2010 because of manufacturing problems.

The company said yesterday that the forced layoffs of 1,500 experienced manufacturing workers in the fourth quarter after an immigration investigation reduced production efficiency and hurt profits.

American Apparel said there was “a high level of uncertainty” about how long the production inefficiency will last.

The company also said because of restrictive bank covenants, it was unclear how much additional investment it could make in its business in the current year. Thus the company does not know how many stores it will open in 2010, which also impacted its ability to provide annual guidance until the first quarter earnings release in May.

The company did say it expects same store sales to decline 10% in the first quarter.

Fourth quarter results

Net sales: up 8.6% to $158.1 million

Retail sales: up 10.4% to $108.2 million

Same store sales: down 7% in constant currency

Total number of stores: 281. The company opened 21 new stores in 2009.

Wholesale sales: up 6.1% to $38.5 million

Online sales: flat at $11.4 million

Gross margin: 55% vs. 54.5%, thanks to currency fluctuations.

Net income: down 23% to $3 million.

2009 results

Net sales: up 2.5% to $559 million

Net income: down 92% to $1.1 million. A $13.2 million merger-related, stock based compensation expense impacted earnings.

Cash: $9 million

Debt: $83.4 million

 

 

 


Articles You Might Have Missed