Stronger sales were insufficient to offset higher interest expense and accounting items as American Apparel Inc. more than doubled losses in the third quarter.In the three months ended Sept. 30, the net loss escalated to $18.5 million, or 18 cents a diluted share, from a loss of $7 million, or 7 cents, in the year-ago quarter. Sales grew 15.1 percent, to $162.2 million from $140.9 million, as comparable-store sales were up 20 percent and comparable online sales up 21 percent. Gross margin declined to 52.5 percent of sales from 53.2 percent in the 2011 quarter.RELATED CONTENT: Click Here for More Earnings Coverage >>While interest expense was up 18.4 percent to $10.5 million from $8.8 million a year ago, the biggest toll on the bottom line came from a $13.3 million loss tied to the increase in the fair market value of outstanding warrants based on changes in the company’s stock price. Although the warrants will convert to equity when exercised, the loss on them comes against a gain of $6.1 million in last year’s quarter.Stripping out interest and warrant liability along with other items, the company said consolidated adjusted earnings before interest, taxes, depreciation and amortization more than doubled to $13.3 million from $6.4 million a year ago.“EBITDA performance for the 12 months ended Sept. 30, 2012, was $28 million or double that reported for the full year in 2011,” said Dov Charney, chairman and chief executive officer of the financially troubled vertical retailer. “As we improve store productivity and aggressively grow our online and wholesale businesses, we expect operating expense leverage will allow us to continue to significantly grow EBITDA performance.”However, the company lowered its projections for full-year EBITDA to a range of $36 million to $40 million based on the impact of Hurricane Sandy and investments in advertising and store technologies. The earlier guidance was for EBITDA of $36 million to $44 million.
Exclusive: @longchamp is planning to stage its first official runway show at New York Fashion Week this fall. The French leather goods firm has expanded into ready-to-wear as part of its repositioning as a lifestyle brand. The show, scheduled for September 8, will also cap the brand’s 70th anniversary celebration. Get all the details on WWD.com. #wwdnews #wwdfashion (📷: @dominiquemaitre)
The Duke and Duchess of Sussex undertook their first overseas engagement as a married couple in Dublin. The trip included multiple events and outfits changes, including this black dress by @emiliawickstead that Meghan Markle wore for a party at the British Ambassador’s home. #wwdfashion #royals
At 20 years old – and with an estimated net worth of $900 million - @kyliejenner is the youngest person to ever make @forbes’ annual list of America’s Richest #SelfMadeWomen. “It’s incredible to be recognized for something I’m so passionate about, and I’m really grateful for that. I’ve always loved makeup and worked really hard to bring the first lip kit to the market,” said Jenner on founding @kyliecosmetics. See who else is on the list on WWD.com. #wwdnews #wwdbeauty (📷: @rainerhosch)
“The collection is inspired by Tulum and the Mayan Riviera – its laid-back luxury, life of cabanas, untouched coastline, natural habitats, exotic cocktails and jungle parties with renowned DJs,” said Matteo Maniatty, creative director and cofounder of @descendantofthieves, on the brand’s inspiration for its latest collection. See more designer sketches and inspirations on WWD.com. #wwdfashion #nyfwmens #nyfw
@riccardotisci17 is releasing a limited-edition capsule collection as part of his anticipated runway debut for @burberry in September. Delivered in a series of instant drops, this is the second Burberry capsule collection announced since Friday, when Tisci broke the news on his collaboration with @viviennewestwood. Get all the details on WWD.com. #wwdfashion #wwdnews
“It’s like a Cinderella story. You get a little fake, you get a little real, you put it together and voilà,” said legendary rapper Slick Rick, who helped pioneer the merge of luxury and streetwear. WWD’s @ariahughes spoke to @therulernyc about his jewelry collection, his collaboration with @bally and how the industry has evolved – link in bio. (📷: @kristaschlueter)
@ragandbone and @eminem are teaming up on a special capsule collection of streetwear pieces. Sold at a one-day pop-up in London’s Soho on Friday, the collection features three different T-shirt designs and a hoodie. The capsule is set to kick off the rest of Eminem’s shows in his European Revival Tour, which ends on Sunday. Get all the details on WWD.com. #wwdfashion