American Apparel Inc. posts net loss of $16.2M in Q2

Nathan Andrada – Fourth Estate Cooperative Contributor

New York, NY, United States (4E) – American Apparel, Inc. said its net loss in the second quarter stood at $16.2mn, or $0.09 a share, compared to $37.5mn, or $0.34 a share, net loss for the year-earlier quarter.

Second quarter net sales increased to $162.40mn from $162.24mn from the year-ago quarter on a 6 percent drop in retail comparable store sales and a 9 percent gain in wholesale net sales.

American Apparel also said that it is currently in discussions with Standard General for an unsecured loan agreement between one or more Standard General affiliates and one or more foreign subsidiaries of the firm as borrowers.

American Apparel said it wants to get into the credit agreement as soon as practicable.

The company also said on Monday that the decline in same-store retail and online sales in the second quarter was offset by a 9 percent jump in net sales for the wholesale business.

The company predicts adjusted earnings before interest, taxes, depreciation and amortization to be between $40mn and $45mn for the year.

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