After issuing second-quarter results so late they almost got kicked off the stock exchange, American Apparel issued third-quarter results on time. Unfortunately, the company posted another loss, this time a net of $9.5 million versus a net income of $4.2 million a year ago, for the three months ended September 30. Sales were down 10.5 percent across the company’s 278 stores, and 16 percent in stores open at least a year.
So how to fix things? Ex-Blockbuster executive Tom Casey, who is now American Apparel’s acting president, said the brand plans to lower distribution and lease costs. CEO Dov Charney said American Apparel plans to hire more executives and work with his lenders to come up with a plan that won’t force him to go out of business.
Charney added that he’s seen “reinvigorated interest” in the brand and that the company plans on driving sales of its basics as it “aligns product design and development with more efficient manufacturing.”
This sounds like a good idea. How many people are buying the bizarre novelty items, like the $70 petticoat, or $28 high-waisted lamé shorts, or any of the Banana Republic wannabe trousers? Shopping at the store has increasingly become an exercise in laughing at its silliest items, which is a great substitute for television, but seriously, what do you want from American Apparel? What do you buy there?