A discussion draft of the Online Sales Tax Simplification Act of 2016 is expected to be introduced in Congress soon.
Third quarter online sales fell 3.3%, as total sales dropped 10.5%
Sales declined across the board, including online for American Apparel Inc. in the third quarter.
For the quarter ended Sept. 30, American Apparel, No. 269 in the Internet Retailer Top 500 Guide, reported:
- A decrease in web sales of 3.3% to $8.7 million from $9.0 million in the third quarter of 2009.
- A drop in total sales year over year of 10.5% to $134.5 million from $150.3 million.
- A decrease in retail sales of 14.3% to $86.6 million from $101.0 million in the third quarter of 2009.
- A drop in comparable-store sales of 16%.
- Net loss for the quarter was $9.5 million compared to net income of $4.2 million in the prior year.
“The third quarter was the first summer with a re-trained manufacturing workforce,” says CEO Dov Charney. “This year, because we were late to build production capacity while we were simultaneously broadening our product assortment, many deliveries were late to our retail stores. Management focus has now shifted from building production capacity to driving sales in our stores, as consumers take interest in our renewed product line.”
Internet Retailer calculates the web accounted for 6.5% of total sales compared with 6% in the prior year.
For the first nine months, American Apparel also reported:
- A decrease in web sales of 5.4% to $24.5 million from $25.9 million in first three quarters of 2009.
- A drop in total sales year over year of 2.9% to $389.0 million from $400.6 million.
- A decrease in retail sales of 8% to $249.5 million from $271.2 million in the first three quarters of 2009.
- Net loss for the first three quarters was $67.0 million compared to a net loss of $1.9 million in the prior year.
In October, American Apparel appointed Tom Casey as the company’s acting president. Casey was a former executive vice president and chief financial officer for Blockbuster Inc.
Internet Retailer calculates the web accounted for 6.3% of sales in the first three quarters compared with 6.5% in the prior year.