Earnings Up
Despite a decline in revenues, American Apparel in Los Angeles recorded a 78 percent increase in net income for the third quarter ending Sept. 30. The vertically integrated manufacturer of T-shirts and other clothing reported a profit of $4.2 million, or 5 cents per diluted common share, compared with $2.3 million, or 3 cents per diluted common share, a year earlier. However, net sales for the third quarter were down 2.9 percent to $150.3 million from $154.8 million last year. The increase in profit is attributed to a $13.2 million stock compensation expense last year following American Apparel’s merger with Endeavor Acquisition.
