Last Update: 05-Mar-13 07:42 ET
American Apparel shares soar 14% following following better than expected earnings
American Apparel (APP) reported fourth quarter EPS of $0.04 vs. the ($0.02) single estimate while revenues +10% to $173 million (previously reported FY12 revenues); comps +7%). "For 2013, we are initially projecting adjusted EBITDA to be in the range of $47 million to $54 million. This outlook assumes net sales between $652 million and $660 million vs. $647.5 million single est. Raw material costs are estimated at current prices and foreign currency exchange rates are estimated to remain at current levels. Capital expenditures are estimated at $18 million for the year with five new net store openings...As we look towards the longer term, we have set a goal to achieve, over the next three to five years, an EBITDA margin of 15% or 200 basis points higher than our previous peak reached in 2008. Our plans to accomplish that goal include the following: Opening 60 to 70 new stores in a disciplined fashion over the next three to five years. We believe our store base has the potential to exceed 500 locations... Our three to five year goal is to increase our online sales as a percentage of total retail sales to at least 17%... We have set a three to five year goal to grow our business to business wholesale channel a minimum of 25% by improving the functionality and offering of our wholesale online store, expanding the assortment of product offered to our wholesale customers and increasing the reach of our sales force. Operating Expenses: We have implemented disciplined processes and controls to minimize overhead cost increases in the future."
American Apparel (APP) reported fourth quarter EPS of $0.04 vs. the ($0.02) single estimate while revenues +10% to $173 million (previously reported