Private investment firm Comvest Partners acquires the financially troubled e-retailer, which filed for Chapter 11 bankruptcy protection in March.
Overall sales are up, too, but the company’s loss widens.
Online sales increased in the third quarter for American Apparel Inc., as its overall sales improved, too.
For the third quarter ended Sept. 30, American Apparel, No. 287 in the Internet Retailer Top 500 reported:
- Web sales increased 19.0% to $11.9 million from $10.0 million in the third quarter of 2011.
- Total sales increased 15.1% to $162.2 million from $140.9 million.
- Retail sales grew 19.0% to $105.1 million from $88.3 million.
- Comparable-store sales grew 20%.
- Net loss was $19.0 million compared with a $7.2 million loss in the third quarter of 2011.
Online sales accounted for 7.3% of total third quarter 2012 sales compared with 7.1% in the same quarter a year ago. The web also accounted for 11.3% of retail sales in Q3, the same percentage as last year.
”We continue to make meaningful progress in improving inventory efficiency with a 5% reduction in unit inventory in this quarter,” says Dov Charney, chairman and CEO. “This brings our total unit reduction to over 18% since we began this undertaking in 2011. Although our aggressive approach to reducing inventories has caused a modest amount of margin erosion, improving inventory turns by driving unit sales will improve inventory efficiency, lower carrying costs and reduce working capital requirements over the long-term.”
For the first three quarters:
- Web sales increased 23.1% to $36.8 million from $29.9 million in the first three quarters of 2011.
- Total sales increased 14.0% to $444.3 million from $389.8 million.
- Retail sales increased 14.6% to $280.5 million from $244.8 million.
- Net loss was $42.2 million compared with a $28.2 million loss in the first nine months of 2011.
Online sales accounted for 8.3% of overall sales in the first three quarters of 2012 compared with 7.7% for the same period a year ago. The web accounted for 13.1% of retail sales in the first nine months of Q3, compared with 12.2% last year.