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American Apparel losses widen despite "solid growth"

Losses at US fashion chain American Apparel more than doubled in the third quarter despite the retailer delivering “solid growth”.

Net losses grew from from $7.2m to $19m in the three months to September 30 as higher interest rates hit the company.

Yet the company still managed to grow with EBITDA more than doubling from £6m last year to £14m this year.

Net sales grew 15% to $162.2m compared with last year, with like-for-like sales rising 20% during the quarter. Wholesale revenues grew 6% in the quarter and like-for-like store sales in the year to November 12 grew 13%.

Gross profits for the third quarter increased 14% to $85.2m.

Chairman and chief executive Dov Charney said: “We are pleased with our third quarter results that again show solid growth and continuing momentum in all business segments and major geographies.”

“As we improve store productivity and aggressively grow our online and wholesale businesses we expect operating expense leverage will allow us to continue to significantly grow EBITDA performance.”

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