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American Apparel Q1 net sales decline 9 percent

By Prachi Singh

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American Apparel, for its first quarter ended March 31, 2015 reported that its net sales decreased 9 percent to 124.3 million dollars from 137.1 million dollars for the same period in 2014. Excluding the year over year impact from foreign exchange and stores closed in 2014 net sales decreased 4 percent. First quarter comparable store sales were negative 5 percent for both the first quarter of 2015 and 2014. Gross profit for the first quarter decreased 34 percent to 47.5 million dollars from 72 million dollars for the same period in 2014. Gross profit, excluding significant charges, decreased to 42 percent of net sales from 52.5 percent in the first quarter of 2014.

"The new executive management team and board of directors is committed to driving shareholder value and has implemented the initial phase of a multi-year strategic turnaround plan designed to improve operating and financial results over the long-term. Key areas of focus under the plan include infrastructure, operational and financial planning, expense control, design/product development, retail store productivity, e-commerce and wholesale optimization, e-commerce analytics, speed-to-market, and brand building," said Paula Schneider, Chief Executive Officer.

Operating expense for the quarter decreased 11 percent from 79 million dollars, compared to 70.3 million dollars for the same period in 2014. Net loss was 26.4 million dollars or 0.15 dollar per share, compared to net loss of 5.5 million dollars, or 0.05 dollar per share for the first quarter of 2014.

American Apparel