* Q3 EPS $0.05 vs est $0.03
* Q3 sales $150.3 mln vs est $145.5 mln
* Backs FY09 view * Says sales momentum picking up
Nov 10 American Apparel Inc's APP.A quarterly
results came in above Wall Street estimates, boosted by a shift
towards higher-margin retail sales.
"While it is still very early, we are encouraged by some
indications pointing to the beginning of momentum in our
sales," Chief Executive Dov Charney said in a statement.
The company, popular for its colorful T-shirts and other
basics worn by urban hipsters, said it earned $4.2 million, or
5 cents a share for the third quarter, compared with $2.3
million, or 3 cents a share, a year ago.
Analysts were expecting the company to earn 3 cents a
share, according to Thomson Reuters I/B/E/S.
Total sales slid 3 percent to $150.3 million, but topped
estimates of $145.5 million.
The company, which manufactures products at its Los Angeles
factory and has made immigration reform a central theme of its
corporate message, said gross margin for the quarter was 58.1
percent, up from 49.1 percent last year.
The lower-margin wholesale business contributed 26.7
percent to total net sales compared with 30.4 percent, a year
American Apparel still expects its full-year net sales to
be in the range of $540 to $555 million and maintained its
forecast of a net loss of $1 million to a profit of $4 million
for the period.
The company's shares closed at $2.61 Monday on the American
(Reporting by Nivedita Bhattacharjee in Bangalore; Editing by