Corporate reports kicked off the week for listed apparel companies worldwide. In Germany, Tom Tailor followed Adidas and advanced its intentions of focusing on profitability. Meanwhile, American Apparel struggled to convince investors about the benefits of its offering.
German fashion and lifestyle company Tom Tailor Holding AG said its 2013 net loss attributable to the shareholders of the company totalled 21.2 million euros or 0.87 euros per share. This compares to a net profit of 288 thousand euros or 0.01 euros per share a year ago.
The group's loss before taxes hit the 11.8 million euros, compared to profit before taxes of 2.67 million euros last year. On a positive note, revenue for the year nearly doubled, gaining 44 percent to 907.2 million euros - ahead of the 629.7 million euros achieved last year.
Far away, in the United States, shares of American Apparel Inc. dropped 22 percent Tuesday after the fashion retailer said it launched an underwritten public offering of 30.5 million dollars of shares of its common stock in continuing efforts to deal with its dire financial challenges.
The proceedings will go to cover interest due next month on its senior secured notes, the company said. It is worthy a note that Tuesday's closing price was the company's lowest since 2011.
Elsewhere, Brian Woolf, CEO at Body Central commented the company´s results for the fourth quarter of 2013: "Our fourth quarter results reflect challenges facing the Company as we work to improve our store and direct business merchandising assortments and drive traffic. We remain focused on executing our strategy and serving our customers amid a difficult environment. We currently have approximately 20.1 million dollars of cash (including 12 million dollars drawn as a term loan under our asset-based loan facility) and up to an additional 5 million dollars under the undrawn, asset-based revolving loan facility, and we are taking additional actions intended to improve liquidity through the balance of 2014."