Sponsors
Billabong ▼ 0.000 | PPR ▲ +0.45 | American Apparel ▼ -0.006 | The Buckle ▼ -0.83 | Columbia ▼ -0.31 | Deckers Outdoor ▼ -1.45 | Dicks ▼ -0.52 | Foot Locker ▲ +0.04 | Genesco ▼ -0.67 | Iconix Brand Group ▲ +0.15 | Jarden Corp ▲ +0.10 | Nordstrom ▼ -0.62 | Luxottica ▼ -0.63 | Nike ▲ +0.93 | Pacific Sunwear ▲ +0.01 | Skullcandy ▼ -0.20 | Sport Chalet ▲ +0.04 | Urban Outfitters ▼ -0.64 | VF Corp ▼ -0.28 | Quiksilver ▲ +0.07 | Zumiez ▼ -0.31 | Macys ▼ -1.83 | Tillys ▲ +0.01 |
Ticker Sponsor
Readers Say
Executive Edition rules
Executive Edition rules

“Shop-Eat-Surf” is now officially, the first stop in the morning for industry news. Accurate reporting, no sensationalism, and just the facts. Refreshing support to an incredible industry with a very bright future. Tiffany has cemented her role in the industry....the site is thought provoking, and inspirational. Learning the stories of others is incredibly useful. Great way to connect the retail community with the wholesale and financial, instantly and nationwide. ... And the Executive Edition rules.

- By Bob Hurley, Chairman, Hurley International
Keeps me in the loop
Keeps me in the loop

Being an Executive Edition member allows me to not miss a beat when it comes to the Industry business news. Definitely keeps me in the loop plus goes great with my morning joe.

- By Tony Perez, Surfer and Surfing magazines
New Industry Insight

Shorebreak Hotel as a venue for industry events. Cinematographer Louie Schwartzberg's "Moving Art Retreat" in June at Turtle Bay Resort. 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