American Apparel Inc (AMEX:APP) had a loss and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
American Apparel Inc Earnings Cheat Sheet
Revenue: Rose 4.07% to $138.06 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: American Apparel Inc reported adjusted EPS loss of $0.21 per share. By that measure, the company met the mean analyst estimate of $-0.21. It missed the average revenue estimate of $138.72 million.
Quoting Management: Dov Charney, Chairman and CEO of American Apparel, Inc. stated: “Although we are pleased with our first quarter performance, we will not be satisfied until we exceed prior productivity levels in our stores (see Chart 1), significantly increase our online sales penetration levels (see Chart 2), and drive additional volume through our wholesale channel. Despite some liquidity challenges over the past two years, we have made the necessary investments that should allow us to exceed our prior EBITDA levels (see Chart 3). We have significantly improved our store presentation, responsibly added stores when it was appropriate to do so, improved technology in all three channels, increased inventory productivity and substantially improved the effectiveness of our supply chain operation.”
Key Stats (on next page)…
Revenue decreased 20.21% from $173.03 million in the previous quarter. EPS decreased to $-0.21 in the quarter versus EPS of $-0.03 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from $0 to a loss $0.06. For the current year, the average estimate has moved down from a profit of $0.05 to a loss of $0.22 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)