* Q1 loss/shr $0.13 vs $0.02 profit last year
* Cuts 2009 outlook
* May have to restate for revolver classification
* Same-store sales down 7 pct
* Shares tumble 20 percent
May 18 Clothing retailer American Apparel Inc
APP.A swung to a first-quarter loss, cut its full-year
outlook and said it may have to restate prior financial
statements due to the classification of its revolving credit
facility, triggering a 20-percent slide in its stock.
The company, which earlier in the day settled a suit bought
by film director Woody Allen for $5 million, said operating
expenses rose 21 percent to $69.3 million in the quarter, while
sales were up 2.4 percent to $114.3 million.
For the quarter ended March 31, American Apparel, which
operates over 265 retail stores in 19 countries, posted a net
loss $9.0 million, or 13 cents a share, compared with a profit
of $1.1 million, or 2 cents a share, a year ago.
American Apparel said any change to the classification of
its revolving credit as a long-term obligation and certain
other balance sheet matters, may result in a restatement of
prior financial statements, but is not expected to hurt net
cash flows, cash position, revenues or net income.
It now sees income from operations of $40 million to $50
million in 2009, compared with its prior view of $55 million to
$65 million. It now expects net sales of $550 million to $575
million in 2009 compared with its earlier forecast of $575
million to $600 million.
The company's often flamboyant Chief Executive Dov Charney
said that while in the first quarter the company had to deal
with severe liquidity constraints that hurt sales and margins,
its recently completed financing with Lion Capital puts it on
more solid footing for the future.
Shares of the Los Angeles-based company were trading at
$4.40 in trading after the bell, after closing at $5.47 on the
American Stock Exchange Monday.
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(Reporting by Renju Jose in Bangalore; Editing by Anthony