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# American Apparel No More? Company Signals Trouble Ahead

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<!-- video src="https://cdn.jwplayer.com/manifests/lwUBpgow.m3u8" -->
## Video: American Apparel No More? Company Signals Trouble Ahead

[Watch (HLS stream): American Apparel No More? Company Signals Trouble Ahead](https://cdn.jwplayer.com/manifests/lwUBpgow.m3u8) (0:57)

![American Apparel No More? Company Signals Trouble Ahead](https://cdn.jwplayer.com/v2/media/lwUBpgow/poster.jpg?width=720)

_Published 2015-08-18. American Apparel is in trouble with its latest quarterly report broadcasting a dire warning about the future of the clothing company._


---

Jul 27, 2023 6:40 PM UTC

---

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### American Apparel Cutting Factory Hours, Considering Sale

[Controversial American Apparel CEO Charney Out](/video/CBqgDqe7/)

### Controversial American Apparel CEO Charney Out

---


## Transcript

American Apparel, the troubled controversy- prone clothing store may fold. That news comes along with a not- so- great second quarter report from the company. American Apparel's second quarter saw net sales drop 17. 2 %. Bringing it down to about $ 134 million. Just about everything was down actually. Gross profit down 25 %, gross margin down to 45. 8 % from 50. 7 % last year. Net losses came to about $ 19. 4 million in all. Or about 11 cents per share. Right, so quite a bit of bad news and American Apparel says things aren't looking great for the next 4 quarters. Adding that it may not even have enough money to last that long.

Things have been rough for the Apparel company ever since it's board dropped American Apparel founder and former CEO CEO Dov Charney last year. There was a thread of hope in June, when the company unveiled its plan to become a $ 1 billion brand. Though looking now, it's hard to see that coming to fruition.

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