Apex Global Brands Q3 revenues decrease 17 percent

Apex Global Brands revenues were 4.1 million dollars in the third quarter, a decrease of 17 percent reflecting the non-renewal of certain licenses and the decrease in sales of licensees’ products stemming from the Covid-19 pandemic. For the first nine months, revenues totalled 12.5 million dollars, a decrease of 20 percent from 15.5 million dollars in the first nine months of fiscal 2020.

“Consistent with the overall retail sector, we continued to see challenges in the third quarter,” said Henry Stupp, Chief Executive Officer of Apex Global Brands in a statement, adding, “The COVID-19 pandemic continues to impact our business. While our licensees and business partners are adapting, it remains difficult to predict the near-term impact, let alone the long-term impact, on our business. Given the current state of the economy, we cannot predict if that shift to online purchasing will result in a successful holiday shopping season.”

The company’s operating loss in the third quarter reached 3.8 million dollars compared to a loss of 3.9 million dollars in the third quarter of the prior year, while operating loss during the first nine months was 10.9 million dollars. Net loss was 6 million dollars in the third quarter or a loss of 10.58 dollars per diluted share compared to net loss of 6.8 million dollars or a loss of 12.35 dollars per diluted share in the third quarter of the prior year. Net loss for the first nine months was 9.2 million dollars or a loss of 16.34 dollars per diluted share compared to a net loss of 10.4 million dollars or a loss of 19.32 dollars per diluted share in the prior year.

The company said, adjusted EBITDA totalled 1.8 million dollars in the third quarter, an increase of 0.1 million dollars from 1.7 million dollars in the third quarter of the prior year, while adjusted EBITDA in the first nine months decreased to 5.2 million dollars from 5.4 million dollars in the first nine months of fiscal 2020.

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