American Apparel Q2 net sales decline 17.2 percent

American Apparel, for its second quarter ended June 30, 2015 reported that net sales decreased 17.2 percent to 134.4 million dollars from 162.4 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 14 percent from the same period in 2014.

The decline in comparable sales was attributable to the lack of new style introduction for the spring and summer selling season. Net sales also decreased approximately 3 million dollars due to the store closures. In addition, the unfavorable impact of foreign currency exchange rate changes contributed to the sales decrease of approximately 4 percent or 6.2 million dollars.

Gross profit decreased 25.3 percent to 61.5 million dollars from 82.4 million dollars for the same period in 2014. Gross margin for the second quarter of 2015 was 45.8 percent compared to 50.7 percent for the same period in 2014. The decrease was primarily related to lower retail sales coupled with the negative effects of foreign currency exchange rate changes and an increase in workers compensation and health benefit costs.

Operating expense decreased 10.2 percent to 71.4 million dollars from 79.6 million dollars for the same period in 2014 as a result of our cost reduction efforts. Excluding the effects of the significant charges, operating expenses decreased 12.8 percent to 65.1 million dollars from the same period in 2014. Net loss for the second quarter was 19.4 million dollars or 0.11 dollar per share, compared to net loss of 16.2 million dollars, or 0.09 dollar per share for the second quarter of 2014.