Zara Parent Company's Sales Growth Is Strong.

In the fiscal year ending January 31, 2015, Inditex SA achieved net profit of 2 billion 500 million euros, slightly higher than the 2 billion 490 million euros expected by the market, and 2 billion 380 million euros in fiscal 2013. EBITDA profit before interest tax depreciation and amortization increased 4.5% to 4 billion 100 million euros, but EBITDA profit margin fell 90 basis points to 22.6%. Gross profit margin It also contracted 100 basis points, down from 59.3% in the previous year to 58.3%.

Net sales for the year amounted to 18 billion 120 million euros, up 8.3% from 16 billion 720 million euros in the previous year. The same store sales including physical facade and online sales increased by 5%, compared with 3% in the 2013 fiscal year. Although online sales are still small, but the growth is strong, the flagship brand Zara's daily traffic has exceeded 2 million 500 thousand, more than doubled over three years ago. The website will increase online sales function in three markets in Greater China, such as Hongkong, Macao and Taiwan this year.

Group in Financial Report China said that the momentum of sales growth was extended in the first five weeks of the 2015 fiscal year ending March 14th. Net sales in the first five weeks of the fiscal year ended March 14th were 13% at fixed exchange rates. Societe Generale SA (SOGN.PA) Anne Critchlow, an analyst at Xing Xing bank, pointed out that the same store sales growth was 6%, higher than 4% of the market forecast, and its largest competitor, the second largest clothing retailer Hennes Mauritz AB (HMb.ST), had the same sales growth in the first quarter of 2015 fiscal year. Hennes & Mauritz AB announced early this week that its global tax sales increased by 15% in the first quarter.

While sales growth is accelerating, the group will continue to benefit from continued weakness. Euro 。 In the 2014 fiscal year, the euro depreciated by 17% against the US dollar, thereby enhancing the profitability of Inditex SA, which purchases 65% clothing products from Europe.

Inditex SA (ITX.MC) rose 3.48% on Wednesday and closed at 29.15 euros, which has risen nearly 23% so far in 2015.

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American Apparel Inc. disclosed that it is now discussing with Capital One Financial Corp. to amend the credit terms to obtain the largest single shareholder of Standard General LP $15 million in loans. Standard General LP last year promised to borrow $25 million from American Apparel Inc. in exchange for board reorganization, and the first to buy $10 million American Apparel Inc. bonds. Now Standard General LP has removed 5 of the 7 directors of the Central Committee of American Apparel Inc. and joined the 4 directors nominated by them to control the board of directors.

It is reported that American Apparel Inc. and Standard General LP are drafting paperwork for the remaining $15 million loan. It is expected that a bond interest rate of nearly US $14 million can be credited before maturity in April 15th. As of December 31, 2014, the net cash of American Apparel Inc. was only 8 million US dollars, which was further reduced than the 9 million 400 thousand US dollars at the end of the three quarter, but at the same time, it had the 13 million dollar lending capacity provided by Capital One Financial Corp., but this amount had dropped to only 6 million US dollars in March 13th.

American Apparel Inc. also released the full year forecast performance as of December 31, 2014 in the document on Tuesday: estimated annual net sales totaled 609 million US dollars, down 3.9% from the US $634 million in fiscal year 2013, which means that sales in the four quarter decreased 9.2% to 153 million 600 thousand US dollars, and the quarterly decline was the most in four years.

The annual net loss is expected to be reduced to $69 million from $106 million in the previous year, and the loss per share has been reduced from $0.96 to US $0.43. Sales decline during the year and higher retail store impairment offset lower operating expenses. Gross margin was 51%, unchanged from the previous year.

We also reported yesterday that the sale negotiations between American Apparel Inc. and private Holdings Company Irving Place Capital have stalled.

Behind it was Irving Place Capital, supported by Dov Charney, former chairman, President and CEO of American Apparel Inc., who bought American Apparel Apparel in December last year. Bloomberg quoted market sources saying that after several months of negotiations with American Apparel Inc., Irving Place Capital had shaken its valuation and felt that the American Apparel Inc. board preferred to finance the company that redeemed the company's continued losses, rather than seeking sale. It is reported that more than 10 potential buyers including Irving Place Capital have signed a confidentiality agreement.