Apex Global Brands' Q1 sales decline 20 percent

For its first quarter, Apex Global Brands reported revenues of 4 million dollars, a decrease of 20 percent from 5.1 million dollars in the first quarter of the prior year. The decline in first quarter revenues, the company said in a statement, reflects the non-renewal of Apex’s Cherokee license in Japan and the decrease in sales by the company’s licensees related to Covid-19 shelter-in-place and similar orders.

“The global macro-events of the past three months have been and continue to be challenging. The retail industry is suffering. The fashion industry is suffering, and we are all focused on managing our way through this difficult period,” said Henry Stupp, Chief Executive Officer of Apex Global Brands, adding, “As expected, revenues for the first quarter of Fiscal 2021 declined year-over-year due to a combination of the non-renewal of certain of our license agreements along with the impacts of Covid-19. While much is still uncertain, we can leverage times such as these to refine our operations and find new, innovative solutions to maximize our brand assets and reduce our expenses.”

The company added that primarily due to the 9.8 million dollars in non-cash impairment charges, the company’s operating loss for the first quarter, totalled 9 million dollars compared to operating income of 0.6 million dollars in the first quarter of last year. Net loss was 1.8 million dollars or a loss of 33 cents per diluted share compared to net loss of 2.3 million dollars or a loss of 44 cents per diluted share, in the first quarter of the prior year. The company further said that adjusted EBITDA totalled 1.1 million dollars compared to 1.2 million dollars in the prior year.

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