Apex Global Brands Inc (NASDAQ:APEX) shares were fairly flat Monday, on some third-quarter figures painted a bit red.
The company, headquartered in Sherman Oaks, Calif., reported Q3 net loss from continuing operations of $6.8 million on revenue of $4.9 billion.
Revenues declined to $4.9 million from $5.8 million
Adjusted EBITDA decreased to $1.7 million from $2.6 million
SG&A expenses remained flat at $3.2 million and reduced 13% year-over-year for the first nine months of Fiscal 2020, as compared to the same time period in Fiscal 2019. Annual guidance reduced for the fiscal year ending February 1, 2020.
Said CEO Henry Stubb, "Retail and industry headwinds continued to challenge our growth and profitability during the third quarter, resulting in an EBITDA debt covenant miss, to which our senior lender has agreed to forbear its rights under the senior secured credit facility through February 28, 2020.
"The weakening of the British pound, increased U.S. tariffs and the impact of Brexit continued to hamper our progress in core markets. While recent news related to the elimination of tariffs and the strengthening of the British Pound are positives for our industry, these macroeconomic conditions have impacted our ability to return to revenue growth and increased profitability in the near term."
As of November, Apex Global Brands had 45 continuing license agreements in approximately 140 countries.
Shares docked a penny, or 1%, to 95 cents.
