American Apparel (NYSE:APP) Profit Soars on Higher Margins; Stock Surges – APP, URBN, GPS, ANF

American Apparel Inc’s (NYSEAMEX:APP) stock moved up over 14% in extended trading session on Monday after the Los Angeles, California-based company announced a turnaround to profit in fiscal Q4 on higher sales and margins. The company estimate higher sales for fiscal 2013.

The branded fashion basic apparel retailer’s comparable retail and online sales moved up 11% in the fiscal Q4. In the meantime, online sales moved up 42% and wholesale sales surged 19%.

American Apparel’s fiscal Q4 net income was $4.90 million or $0.04 a share, evaluated against net loss of $11.16 million or $0.11 a share for similar period previous year.

Quarterly results for most recent period comprise an income statement credit of $11.2 million or $0.10 a share linked with a non-cash reduction in the fair value of outstanding warrants.

Shifting reader’s focus to broader market, let us consider market performance of other stocks that significantly affect same sector. Urban Outfitters, Inc. (NASDAQ:URBN) rose +0.49% to settle at $41.01, The Gap Inc. (NYSE:GPS) moved down -0.65% to end at $33.65 while Abercrombie & Fitch Co. (NYSE:ANF) jumped +0.09% to finish at $46.31 on Monday.

American Apparel Inc. (NYSE:APP) last session’s volume of 180,843 shares was surprisingly lower than its average volume of 411,258 shares. The stock after opening at $1.30 hit high price of $1.33 and then closed at $1.29 by scoring +0.78%.

The liquidity measure in recent quarter results of the company was recorded 1.29 as current ratio and on the other side the debt to equity ratio was 12.99 and long-term debt to equity ratio remained at 7.57. The Company had total cash of $436.06 billion at hand and a book value per share as $0.13 in the most recent quarter.

The stock’s price volatility was 5.50% for a week and 6.69% for a month as well as price volatility’s Average True Range for 14 days was 0.09 and its beta remained at 2.58.

APP generated revenue of $601.86 million in the previous twelve months and earned -$53.34 million. The Company showed a negative -8.86% in the net profit margin as well as in its operating margin which remained at 0.56%. Company’s annual sales growth for the past five years was 13.94%.

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