American Apparel, Inc. Announces Preliminary October Sales

  American Apparel, Inc. Announces Preliminary October Sales

Business Wire

LOS ANGELES -- November 05, 2012

American Apparel, Inc. (NYSE MKT: APP), a vertically integrated manufacturer,
distributor, and retailer of branded fashion basic apparel, announced
preliminary sales for the month ended October31, 2012 and reported that total
net sales on a preliminary basis increased 5% to $59.1 million when compared
to the month ended October31, 2011. Between the same periods, comparable
retail and online sales on a preliminary basis increased an estimated 5% and
wholesale net sales increased an estimated 17%. The Company estimates retail
stores suffered an approximate 5% reduction in comparable sales from store
closures related to Hurricane Sandy.

The following delineates the components of the increases for each of the four
months ended October31, 2012, when compared to the corresponding months and
quarter of the prior year:

                             July   August   September   October *
      Comparable Store Sales     20%    27%      14%         3%
      Comparable Online Sales    26%    20%      18%         27%
      Comparable Retail &        21%    26%      14%         5%
      Online
      Wholesale Net Sales        6%     12%      1%          17%
                                                            
*Preliminary, subject to adjustment


“October has historically been one of our strongest months based on the
significant uptick in sales we experience for Halloween,” said Dov Charney,
Chief Executive Officer and Chairman of the Board of American Apparel, Inc.
“Like all other retailers, we were blindsided by Sandy, and with greater New
York being our largest market, we estimate we lost in excess of $1.5 million
in retail sales due to the storm. Our hearts go out to the victims, and we
will be distributing, with the help of our own staff,tens of thousands of
garments including socks, T-shirts, thermals, and sweatshirts to those most
deeply affected. As the preeminent US manufacturer of apparel we are grateful
to be in a position to assist in relief efforts, as we did with Hurricane
Katrina and at other times of need. We are thankful that our employees came
through the storm without injury. We also thank our employees who worked
tirelessly to re-open over 25 stores in the region as quickly as they did. At
this time our business is substantially back on track in the region. So far in
November retail sales are showing signs of strength and we anticipate this
trend will continue. Online and wholesale both had a strong October, and I am
confident our positive momentum will continue into the Holiday selling
season.”

About American Apparel

American Apparel is a vertically integrated manufacturer, distributor and
retailer of branded fashion basic apparel based in downtown Los Angeles,
California. As of October31, 2012 American Apparel had approximately 10,000
employees and operated 251 retail stores in 20 countries, including the United
States, Canada, Mexico, Brazil, United Kingdom, Ireland, Austria, Belgium,
France, Germany, Italy, Netherlands, Spain, Sweden, Switzerland, Australia,
Japan, South Korea and China. American Apparel also operates a global
e-commerce site that serves over 60 countries worldwide at
http://www.americanapparel.net. In addition, American Apparel also operates a
leading wholesale business that supplies high quality T-shirts and other
casual wear to distributors and screen printers.

Safe Harbor Statement

This press release, and other statements that the Company may make, may
contain forward-looking statements. Forward-looking statements are statements
that are not historical facts and include statements regarding, among other
things, the Company's future financial condition, results of operations and
plans and the Company's prospects and strategies for future growth and cost
savings. Such forward-looking statements are based upon the current beliefs
and expectations of American Apparel's management, but are subject to risks
and uncertainties, which could cause actual results and/or the timing of
events to differ materially from those set forth in the forward-looking
statements, including, among others: the ability to generate sufficient
liquidity for operations and debt service; changes in the level of consumer
spending or preferences or demand for the Company's products; increasing
competition, both in the U.S. and internationally; the evolving nature of the
Company's business; the Company's ability to hire and retain key personnel and
the Company's relationship with its employees; suitable store locations and
the Company's ability to attract customers to its stores; the availability of
store locations at appropriate terms and the Company's ability to identify and
negotiate new store locations effectively and to open new stores and expand
internationally; effectively carrying out and managing the Company's strategy,
including growth and expansion both in the U.S. and internationally;
disruptions in the global financial markets; failure to maintain the value and
image of the Company's brand and protect its intellectual property rights;
declines in comparable store sales and wholesale revenues; financial
nonperformance by the Company's wholesale customers; the adoption of new
accounting pronouncements or changes in interpretations of accounting
principles; seasonality of the business; consequences of the Company's
significant indebtedness, including the Company's relationships with its
lenders and the Company's ability to comply with its debt agreements,
including the risk of acceleration of borrowings thereunder as a result of
noncompliance; the Company's ability to generate cash flow to service its
debt; the Company's liquidity and losses from operations; the Company's
ability to develop and implement plans to improve its operations and financial
position; costs of materials and labor, including increases in the price of
yarn and the cost of certain related fabrics; the Company's ability to pass on
the added cost of raw materials to its wholesale and retail customers; the
Company's ability to improve manufacturing efficiency at its production
facilities; the Company's ability to effectively manage inventory and
inventory reserves; location of the Company's facilities in the same
geographic area; manufacturing, supply or distribution difficulties or
disruptions; risks of financial nonperformance by customers; investigations,
enforcement actions and litigation, including exposure from which could exceed
expectations; compliance with or changes in U.S. and foreign government laws
and regulations, legislation and regulatory environments, including
environmental, immigration, labor and occupational health and safety laws and
regulations; costs as a result of operating as a public company; material
weaknesses in internal controls; interest rate and foreign currency risks;
loss of U.S. import protections or changes in duties, tariffs and quotas and
other risks associated with international business including disruption of
markets and foreign supply sources and changes in import and export laws;
technological changes in manufacturing, wholesaling, or retailing; the
Company's ability to upgrade its information technology infrastructure and
other risks associated with the systems that are used to operate the Company's
online retail operations and manage the Company's other operations; adverse
changes in its credit ratings and any related impact on financing costs and
structure; general economic and industry conditions, including U.S. and
worldwide economic conditions; disruptions due to severe weather or climate
change; and other risks detailed in the Company's filings with the Securities
and Exchange Commission, including the Company's Report on Form 10-K for the
year ended December 31, 2011. The Company's filings with the SEC are available
at www.sec.gov. You are urged to consider these factors carefully in
evaluating the forward-looking statements herein and are cautioned not to
place undue reliance on such forward-looking statements, which are qualified
in their entirety by this cautionary statement. The forward-looking statements
speak only as of the date on which they are made and the Company undertakes no
obligation to publicly update such forward-looking statements to reflect
subsequent events or circumstances.

Contact:

American Apparel
John J. Luttrell, 213-488-0226
Chief Financial Officer
or
ICR
John Rouleau, 203-682-8342 (Investor Relations)
john.rouleau@icrinc.com