An absence of charges and better margins aided American Apparel Inc. in improving third quarter profits as sales slipped.

 

The Los Angeles-based basics maker and retailer on Tuesday reported a 78.3 percent gain in net income for the three months ended Sept. 30. The company’s profits in the period totaled $4.2 million, or 5 cents a diluted share, versus $2.3 million, or 3 cents a share, in 2008.

 

The year-ago figure contained merger-related expenses of 13 cents a share. On average, analysts polled by Yahoo Finance had expected earnings per share of 3 cents.

 

Sales in the quarter fell 2.9 percent to $150.3 million from $154.8 million a year ago.

 

The company said its gross margin grew to 58.1 percent from 49.1 percent in the comparable period.

 

For complete coverage, see Wednesday’s WWD.

load comments
blog comments powered by Disqus