Apex Global Brands reports 22 percent drop in Q2 sales
16 Sep 2020
Apex Global Brands’ revenues for the second quarter were 4.4 million dollars, a decrease of 22 percent. The decline in revenues, the company said in a statement, reflects the non-renewal of certain Cherokee brand licenses and the decrease in sales of licensees’ products related to Covid-19 shelter-in-place orders. For the first six months, revenues totalled 8.4 million dollars, a decrease of 21 percent from 10.7 million dollars in the first six months of fiscal 2020.
“The Covid-19 pandemic has brought tremendous uncertainty to the retail sector, including a profound impact on our licensees domestically and abroad,” said Henry Stupp, Chief Executive Officer of Apex Global Brands, adding, “Ultimately, while we cannot predict the long-term impact the pandemic will have on our licensees’ abilities to meet their royalty agreements, we have adapted and positioned our company to manage the new realities of the retail market.”
The company’s operating income in the second quarter reached 2 million dollars compared with 1.6 million dollars in the second quarter of the prior year, while operating loss during the first six months was 7 million dollars. Net loss for the quarter was 1.3 million dollars or a loss of 2.38 dollars per diluted share compared to net loss of 1.3 million dollars or a loss of 2.34 dollars per diluted share in the second quarter of the prior year. The company added that net loss for the first six months was 3.2 million dollars or a loss of 5.69 dollars per diluted share compared to a net loss of 3.5 million dollars or a loss of 6.69 dollars per diluted share in the prior year. The company’s adjusted EBITDA totalled 2.3 million dollars in the second quarter, while adjusted EBITDA in the first six months decreased to 3.4 million dollars.