American Apparel Profit On Year-Earlier Merger Costs

[drartypitte]

American Apparel Inc. (APP) third-quarter earnings jumped 78% after year-earlier stock compensation related to a 2008 merger depressed margins. Meanwhile, sales continued to remain week for the casual-clothing retailer.

American Apparel reported a profit of $4.2 million, or 5 cents a share, from $2.3 million, or 3 cents a share, a year earlier. A year earlier, the period included merger-related compensation expenses, excluding which earnings were 16 cents a share.

Revenue decreased 2.9% to $150.3 million, as same-store sales dropped 16% on a goes currency basis.

Gross margin leapt nine percentage points to 58.1%, and rose only slightly from last year's margin excluding merger expenses of 57.6%.