American Apparel Losing Lots and Lots of Money

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American Apparel Losing Lots and Lots of Money
Better stock up on those $40 plain t-shirts: American Apparel looks to be in trouble, if net losses rather than spokesperson flailings are to be believed.

WWD reported that while sales increased from $132.8 mil in the second quarter of 2011 to $149.5 mil this year, American Apparel still posted a second quarter net loss of $15.3 million for 2012, as compared to the $213,000 loss in the second quarter of 2011.

Dov Charney, widely recognized icky sleazeball and chairman and CEO of American Apparel said: “Though the first two quarters are historically our slowest, significant sales growth allowed us to more than double our EBITDA performance. We saw over 30 percent of our stores with sales growth in excess of 20 percent and, as we continue to scale our operations and further implement store-level improvements, we believe we can raise the overall sales performance even further.”

EBITDA stands for earnings before interest, taxes depreciation and amortization.

What all of that comes down to is that the company’s expenses were ridiculously high this year (maybe defending and settling all of those lawsuits about discrimination and sex slavery have something to do with it, Mr. Charney?) and that their sales weren’t able to catch up. It’s not total doom for the brand, of course, but American Apparel stock fell to $1 per share in wake of the news.

H&M’s stock is currently $37 per share, and INDITEX Group’s (owner of Zara) is $104, for comparison. 'Splain that, Charney.
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