Shares of American Apparel Inc. spiked nearly 30 percent in after-hours trading Wednesday after the company reported a 20 percent increase in March same-store sales.
The Los Angeles-based vertical casual apparel retailer also reaffirmed its guidance for full-year adjusted earnings before interest, taxes, depreciation and amortization of between $32 million and $40 million for fiscal 2012. “As such, we believe we will be in a position to refinance elements of our higher cost capital structure and significantly reduce our interest expense by late 2012 or early 2013,” said Dov Charney, chairman and chief executive officer of the debt-encumbered company.
Total sales in March were $49 million, 15 percent above the year-ago month, with comparable-store sales up 20 percent and online sales up 22 percent. Wholesale sales rose 10 percent. The March performance elevated net sales for the quarter ended March 31 to $132.7 million, 14 percent above the 2011 period, with comps for the three months up 14 percent, online sales up 24 percent and wholesale revenues up 17 percent.
The strong monthly and quarterly showings excited investors, who pushed up shares of the company’s stock 28.9 percent in after-hours trading following the disclosure. Shares fell 1 cent to 77 cents during trading Wednesday and moved to 99 cents in the first hour after the close of the markets.
Even with its recent pickup in sales, American Apparel continues to labor under the weight of high-interest financing. Last month, it replaced a $75 million senior credit facility through Bank of America with $80 million in financing from Crystal Financial LLC, backed by George Soros, and Salus Capital Partners LLC, but at interest rates 4.5 points above the B of A line. At the same time, it extended the maturity of its burdensome facility with Lion Capital two years through 2015. It owes Lion about $116 million and is paying an interest rate of 18 percent on the principal.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast