American Apparel Inc. on Tuesday reported a 34 percent decline in first-quarter earnings, hurt by start-up costs for a new dyeing and finishing facility.
For the three months ended March 31, earnings fell to $1.1 million, or 2 cents a diluted share, from $1.7 million, or 3 cents, in the year-ago period. Sales soared 51.9 percent to $111.6 million from $73.5 million, with same-store sales jumping 36 percent.
Management reaffirmed full-year guidance in the range of 32 cents to 36 cents a diluted share, before a onetime non-cash stock compensation expense in connection with a previously announced employee stock grant.
In a separate development, the Los Angeles-based company said it purchased assets from U.S. Dyeing & Finishing Inc. for about $3.8 million in cash. The assets include machinery and equipment related to fabric dyeing. American Apparel also got the lease for two buildings totaling 135,000 square feet. The facility, located in Garden Grove, Calif., has done contract work for American Apparel for about 10 years.
"While American Apparel already operated one of the largest cut-and-sew operations of its kind, this acquisition will further reduce our reliance on contract dye facilities, allowing us to expand our product offering, streamline our supply chain, lower costs and ensure better quality control," said Marty Bailey, chief manufacturing officer.
About 140 U.S. Dyeing & Finishing workers will become employees of American Apparel.
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“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