Small-cap retailer American Apparel (NYSE:
) released its fiscal fourth-quarter earnings results on Monday
after the closing bell. The company's earnings and revenue beat
Wall Street consensus estimates and American Apparel offered
upbeat sales guidance for fiscal 2013. In the wake of the bullish
report, American Apparel shares jumped almost 15 percent to $1.48
in Monday's after-hours trading session.
The company's Chairman and CEO Dov Charney said in a
statement, "We are pleased with our fourth quarter results that
again show solid growth and continuing momentum in all business
segments and almost all major geographies. Significant sales
growth, operating expense control and the acceleration of
leverage of our fixed costs allowed us to increase EBITDA
performance to $17.8 million for the fourth quarter of 2012 from
$9.1 million for the fourth quarter of 2011."
For the fourth-quarter, American Apparel reported net income
of $4.90 million or $0.04 per share, compared to a net loss of
$11.16 million or $0.11 per share, in last year's corresponding
quarter. Heading into the report, Wall Street analysts' had
consensus earnings per share estimates calling for a loss of
Net sales for the period were up 10 percent to $173.03 million
from $157.58 million in the year ago quarter. This came in
slightly ahead of Street consensus revenue estimates of $172.38
The company's comparable retail and online sales were up 11
percent in Q4, driven by a 42 percent increase in Internet sales.
Wholesale revenue was up 19 percent in the period. Gross margin
at American Apparel was 53.8 percent, an increase versus the 53.2
percent gross margin last year.
For fiscal 2012, the company reported a net loss of $37.27
million or $0.35 per share, compared to a net loss of $39.31
million or $0.42 per share, in fiscal 2011. Net sales for the
fiscal year were up 13 percent to $617.31 million compared to
$547.34 million last year.
Looking ahead to fiscal 2013, American Apparel guided for
sales of $652 to $660 million. This is ahead of current consensus
revenue estimates of $647.50 million for the fiscal year. Prior
to Monday's after hours jump, the stock had climbed almost 28
percent already in 2013. American Apparel shares were devastated
during the financial crisis, but have been showing signs of life
over the last 52-weeks, rising 72 percent. Nevertheless, the
company remains a small, niche player in the retail space with a
market cap under $140 million.
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