Boston, MA 05/14/2014 (wallstreetpr) – On May 12, 2014, a leading vertically integrated producer, distributor and also retailer of branded fashionable apparels, American Apparel Inc (NYSEMKT:APP), revealed its financial results for the quarter ended March 31, 2014.
The net sales of the company declined 1% to reach $137.1 million on a 7% hike in wholesale net sales and a 7% decline in comparable store sales. The company recorded a decline in gross profit by 1% to stand at $72 million in the first quarter of this year. In addition, the financial earnings announced on May 12, 2014 for the first quarter of 2014 also includes adjusted EBITDA figure. It has improved by $2.1 million to accomplish $1.4 million for the 1Q2014.
Decreased operating expenses
American Apparel Inc (NYSEMKT:APP)’s operating expenses reduced 5% to arrive at $79.5 million in the quarter ended March 31, 2014. A year back in the same period it was $83.3 million. As a % of sales, the company’s operating expenses reduced to 58% for the 1Q2014 compared to 60.4% for the 1Q2013. The decline includes $ 3 million in professional fees, lesser payroll and associated costs, and marketing and advertising. The decrease is mainly because of the cost cutting moves.
The company had to bear $0.5 million as impairment charges in the retail store as compared to $0.1 million in the first quarter a year back. Additionally, the stock compensation expense was lesser by $2.3 million, while there was an increase in equipment lease expense by $1 million.
The CEO of American Apparel, Dov Charney, mentioned that the company is encouraged by its good performance in the first quarter. Its achieved results are way ahead of the company’s 2014 business plan. American Apparel Inc (NYSEMKT:APP), in the first quarter, had taken several cost control steps and its efforts are aptly reflected in all facets of business, stated the CEO. Moreover, the company is now focussed upon ways to advance top line performance.