Sponsors
Billabong ▲ +0.010 | PPR ▲ +0.55 | American Apparel ▼ -0.013 | The Buckle ▼ -0.39 | Columbia ▲ +0.09 | Deckers Outdoor ▲ +0.26 | Dicks ▼ -0.02 | Foot Locker ▼ -0.18 | Genesco ▼ -0.06 | Iconix Brand Group ▼ -0.05 | Jarden Corp ▲ +0.15 | Nordstrom ▼ -0.15 | Luxottica ▼ -0.56 | Nike ▲ +0.51 | Pacific Sunwear ▼ -0.05 | Skullcandy ▼ -0.04 | Sport Chalet - 0 | Urban Outfitters ▼ -0.53 | VF Corp ▼ -0.01 | Quiksilver ▼ -0.01 | Zumiez ▼ -0.33 | Macys ▼ -0.37 | Tillys ▲ +0.05 |
Ticker Sponsor
Readers Say
Useful on a daily basis
Useful on a daily basis

It's well balanced information that is useful on a daily basis. I'm very satisfied with the Executive Edition. I start each day with SES and a big cup of coffee!

- By Tom Ruiz, EVP Sales, Volcom
It pertains to my business
It pertains to my business

I’m an avid reader of Shop-Eat-Surf because it’s really the only online newsletter that I have found that is not only industry related, but also because it’s not so “guy-centric.” I find that a lot of the information I read on the site pertains to my business (as a swimwear designer) and keeps me up to date on what other companies and other women in the industry in general are doing which is not only inspiring but also helps me gauge the future direction of my business as well.

I feel privileged to read the Executive Edition because I know I am getting insider industry information before it hits the mainstream media channels. And it’s always good to know what my friends are up to in the industry.

- By Monica Wise, Founder, L*Space
Industry Insight

MOSS ADAMS: Webinar 12/2 on internal controls to increase the value of your business.
AGENDA: 12/30 deadline to pre-register for Jan. 5-6 Long Beach show.
CIT TRADE FINANCE: Middle-market retailers cautiously optimistic for holiday.
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