American Apparel (APP) Prelim. Nov. Comps Rose 1%
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American Apparel, Inc. (AMEX: APP) announced preliminary sales for the month of November 2013. On a preliminary basis, total net sales were $49.2 million, a decrease of 1% over the prior year. Comparable sales increased 1%, including a 1% increase in comparable store sales in the retail store channel and a 4% increase in net sales in the online channel. Wholesale net sales decreased 4% for the month.
Dov Charney, Chairman and CEO, commented, “We are encouraged by the momentum in comparable store sales particularly at the end of the month, as we increased the efficiency and effectiveness of our La Mirada distribution center and made improvements in our in-stock store inventories. Our new distribution center is fully operational and we have made significant progress in reducing the operating cost of the center. Additionally, as we are able to adjust our focus back to our core competencies surrounding assortment and production planning and product development, we expect to see a corresponding increase in sales in our stores.
“We saw meaningful sales strength in both our stores and online business on Black Friday and the weekend following Thanksgiving. We were also very encouraged by positive online sales growth on Cyber Monday. However, given the shifts in timing of the Thanksgiving holiday, Cyber Monday sales in 2013 will not be recognized until December versus November last year. Finally the modest decline in wholesale net sales is a result of the comparison to an extraordinary sales increase last year, as last November we shipped a significant stocking order from a major new customer. Additionally, we had one extra shipping day for our wholesale business last November.
“Following the ongoing success of American Apparel in Europe, we are expanding our footprint and have just opened a shop-in-shop inside De Bijenkorf, a high-end department store on Dam Square, the main town square in Amsterdam. In addition, three new stores are planned to open this holiday season in Lyon, France; Centro Oberhausen in Oberhausen, Germany; and Westfield Stratford City in Stratford, London.”
Dov Charney, Chairman and CEO, commented, “We are encouraged by the momentum in comparable store sales particularly at the end of the month, as we increased the efficiency and effectiveness of our La Mirada distribution center and made improvements in our in-stock store inventories. Our new distribution center is fully operational and we have made significant progress in reducing the operating cost of the center. Additionally, as we are able to adjust our focus back to our core competencies surrounding assortment and production planning and product development, we expect to see a corresponding increase in sales in our stores.
“We saw meaningful sales strength in both our stores and online business on Black Friday and the weekend following Thanksgiving. We were also very encouraged by positive online sales growth on Cyber Monday. However, given the shifts in timing of the Thanksgiving holiday, Cyber Monday sales in 2013 will not be recognized until December versus November last year. Finally the modest decline in wholesale net sales is a result of the comparison to an extraordinary sales increase last year, as last November we shipped a significant stocking order from a major new customer. Additionally, we had one extra shipping day for our wholesale business last November.
“Following the ongoing success of American Apparel in Europe, we are expanding our footprint and have just opened a shop-in-shop inside De Bijenkorf, a high-end department store on Dam Square, the main town square in Amsterdam. In addition, three new stores are planned to open this holiday season in Lyon, France; Centro Oberhausen in Oberhausen, Germany; and Westfield Stratford City in Stratford, London.”
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