American Apparel Q3 Loss Widens, In Talks For $15 Million Loan
American Apparel Inc's (NYSE: APP) third-quarter loss widened substantially and the company said it expects to ink a $15 million credit agreement in the current period.
American Apparel shares are down 38 percent year to date. In Monday's extended session, shares gained 0.6 percent, trading recently at $0.77.
The troubled women's apparel retailer said the recent period included a $5.3 million charge for legal disputes and the investigation into the conduct of its former Chief Executive Dov Charney, as well as $3.1 million for severance costs.
Results also included a charge of $4.4 million for a retroactive punitive customs duty settlement with Germany.
The company said it's negotiating a $15 million unsecured credit agreement with Standard General it expects to complete in the fourth quarter of 2014.
In the recent period, same-store sales fell 7 percent and online sales dropped by 5 percent.
The company posted a loss of $19.18 million, or $0.11 per share, compared with a year-earlier loss of $1.51 million or $0.01 per share. Sales fell 5.5 percent to $155.7 million, from $164.5 million last year.
Analysts expected a loss of $0.04 per share on revenue of $162.4 million.
For 2014, the company forecast $40 million to $45 million in adjusted earnings before interest, taxes, depreciation and amortization.
See more from Benzinga
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.