Apex reports plummeting revenues, tumbles into loss
Sherman Oaks, California-based Apex Global Brands announced a 16% decrease in third-quarter revenues on Friday, declines which pushed the apparel and footwear company into a decided quarterly loss.
For the third quarter ended November 2, 2019, the company’s revenues totaled $4.9 million, down from $5.8 million in the prior-year period. Declines were consistent across the company’s portfolio, which includes the Cherokee, Hi-Tec, Magnum and Interceptor brands. Revenues were also negatively affected by the non-renewal of Apex’s Cherokee license in South Africa at the end of fiscal 2019.
In light of these falling revenues, the company announced that its management has brought in a range of cost-cutting measures. Nonetheless, the group’s quarterly net loss was $6.8 million, or $1.23 per diluted share, down from a net income of $0.06 million, or $0.01 per diluted share, in Q3 2019.
“Retail and industry headwinds continued to challenge our growth and profitability during the third quarter,” said Apex CEO Henry Stupp in a release. “Management and our board of directors are focused on not only enhancing our brand portfolio, but importantly, strengthening our balance sheet and improving our liquidity.”
Year to date, Apex’s revenues were $15.5 million, a decrease of 15% from $18.3 million in the first three quarters of 2019.
The company’s net loss for the period was $10.4 million, or $1.93 per diluted share, a slight improvement from the net loss of $11.7 million, or $2.50 per diluted share, reported by Apex in the same period in the previous year.
In line with the negative trends reported by the company in the third quarter, Apex has updated its full-year guidance for fiscal 2020, with revenues now expected to be in the range of $21.0 million to $21.5 million.
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