American Apparel Inc. has promoted Adrian Kowalewski to executive vice president and chief financial officer.
As cfo, he succeeds Ken Cieply, who left the company in May. Cieply resigned after American Apparel’s controversial founder and chief executive officer, Dov Charney, said in a March Wall Street Journal interview that his cfo was a “complete loser” with “no credibility” in the retail apparel industry.
Charney later retracted the comment, but Cieply left to pursue other opportunities. William T. Gochnauer was appointed interim cfo shortly after.
Kowalewski, 31, will continue to serve as director of corporate finance and development, a job he has held since 2006. He also will continue to serve as a director of the firm, as he has since the completion of its merger with Endeavor Acquisition Corp. in December 2007.
Prior to joining the Los Angeles-based retailer, Kowalewski worked in mergers and acquisitions at investment banks CIBC World Markets, Houlihan Lokey Howard & Zukin and Lazard Freres & Co.
“In light of his past contributions to American Apparel, and his efforts over the past six months in helping to build the accounting and finance functions at the company, both I and the rest of the board have full confidence that he will serve the company well in this new leadership role,” Charney said of Kowalewski.
Shares of the maker of slim-fit T-shirts and other basics fell 27 cents, or 14.8 percent, on Monday to close at $1.55, a new 52-week low. The corresponding high is $15.28.
The stock has been under increasing pressure in recent months not only because of the difficulties confronting a wide range of apparel retailers, but also because of a series of legal skirmishes, tougher refinancing terms for its credit facility and unimpressive third-quarter earnings.
Last week, American Apparel became locked in a legal skirmish when the retailer was sued by its former head of European operations for wrongful termination, breach of oral contract and infliction of emotional distress, among other allegations. American Apparel has filed a suit of its own against the former executive. The cases are the latest in a string of lawsuits against the retailer on grounds ranging from wrongful termination to sexual harassment and employment discrimination.
On the financial end, the company said on Dec. 22 that it was given a three-month extension on debt due to mature next month, which, according to some analysts, carries more risk in a tough economy.
“Though we believe American Apparel operates a resilient and geographically diversified model, heightened sensitivity to the weakening global macroeconomic conditions can’t be ignored,” said Lazard Capital Markets analyst Todd Slater, who lowered his estimates and price target for the firm.
For the third quarter ended Sept. 30, net income slid to $2.3 million, or 3 cents a diluted share, due to stock-based compensation related to its merger with Endeavor. Excluding merger-related costs, the company said it would have reported earnings per share of 16 cents, beating analysts expectations of 13 cents on sales of $149.3 million.
However, the retailer’s revenue growth has been sustained. In the most recent quarter, sales were up 45.2 percent to $154.8 million, as same-store sales rose 24 percent for the period.
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews