American Apparel's First Quarter Wasn't Too Bad, But Bankruptcy is Still a Possibility

Dov Charney and American Apparel released its first quarter results last night, and the numbers weren't terrible. For the first three months of the 2011 fiscal year, sales were down by 4.7% to $116 million. But the company was able to cut a ton of costs (about $2.2 million) by increasing the productiveness of its sales associates (they've got to work now instead of just standing around looking all hipstery) and making its distribution process more efficient. They also received about $14.2 million in additional funding in April, with the possibility of more down the road. The best news was that online sales increased by over 28% to $10.0 million during the time period.
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Dov Charney and American Apparel released its first quarter results last night, and the numbers weren't terrible. For the first three months of the 2011 fiscal year, sales were down by 4.7% to $116 million. But the company was able to cut a ton of costs (about $2.2 million) by increasing the productiveness of its sales associates (they've got to work now instead of just standing around looking all hipstery) and making its distribution process more efficient. They also received about $14.2 million in additional funding in April, with the possibility of more down the road. The best news was that online sales increased by over 28% to $10.0 million during the time period.
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Dov Charney and American Apparel released its first quarter results last night, and the numbers weren't terrible. For the first three months of the 2011 fiscal year, sales were down by 4.7% to $116 million. But the company was able to cut a ton of costs (about $2.2 million) by increasing the productiveness of its sales associates (they've got to work now instead of just standing around looking all hipstery) and making its distribution process more efficient. They also received about $14.2 million in additional funding in April, with the possibility of more down the road.

The best news was that online sales increased by over 28% to $10.0 million during the time period.

Does all of this mean that AA is completely out of the shit hole? Definitely not, but things are looking up. The acting president of the company, Tom Casey, says that the team is "cautiously optimistic." Good, because body suits are really, truly coming back this time, and American Apparel needs to cash in.