Summary of a Financial Article

American Apparel Reports Third Quarter 2010 Financial Results

American Apparel is a clothing store that focuses on basic apparel. They are working with lion capital to update their strategic plan. American Apparels net sales for this quarter went down significantly from last years third quarter. The press release discusses why they think the net sales went down and it talks about how they hope to improve by updating their strategy plan.

American Apparel wants to improve financial results, make more money, by supporting the brand with a customer focused supply chain. Dov Charney, the CEO, commented on the financial results for this quarter and says that because management focus has now shifted to driving sales in our stores he thinks that they will begin to see more profits in the future due to the “renewed product line.”

Terms:

Allocation- Authorization to incur expense or obligation up to a specified amount, for a specific purpose, and within a specific period. Allocating, is essentially assigning money to different departments within a company.

Capital Expenditures- is the term for the cost of long-term improvements. This is when a company spends or invests money into something, a product or an idea, to add value to it.