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American Apparel, Inc. Announces January Comparable Store Sales Increased 10%; Reports Record January Sales in Company History

  American Apparel, Inc. Announces January Comparable Store Sales Increased
  10%; Reports Record January Sales in Company History

Business Wire

LOS ANGELES -- February 7, 2013

American Apparel, Inc. (NYSE MKT: APP), a vertically integrated manufacturer,
distributor, and retailer of branded fashion basic apparel, announced
preliminary comparable sales for the month ended January 31, 2013, and
reported that comparable store sales increased 10%, including a 7% increase in
comparable store sales for its retail store channel and a 24% increase in net
sales for its online channel. Wholesale net sales increased 14% for the month
of January and total net sales increased 11% to $46.4 million.

“We had strong performance this January across all channels – retail,
wholesale and online,” said John Luttrell, Executive Vice President and Chief
Financial Officer of American Apparel, Inc. “Seeing our momentum carry into
2013 gives us confidence that this will be a strong sales year. Even without
relying on additional store openings, our sales could increase by six percent
or greater this year,” concluded Luttrell.

“We believe the online segment will grow significantly, driven by
technological improvements to our website, coupled with strong demand from our
metropolitan adult customer,” said Dov Charney, Chairman and Chief Executive
of American Apparel, Inc. “Additionally, it is noteworthy that the imprintable
wholesale division of the company is experiencing positive momentum as a
result of improved conditions in the ad specialty arena. Increased sales are
important to us because we can leverage store and corporate overhead. But more
importantly, increased sales allow us to absorb overhead at our factory, which
has ample capacity for additional production.”

“Currently, our most profitable stores are in Tokyo, Beijing, London, Sydney
and New York,” added Charney. “American Apparel is a brand that appeals in
global city centers, and I reiterate that in the long range, we see an
opportunity to open hundreds of stores all over the world. In the meantime,
our focus is to make our existing business more profitable.”

The following table compares sales growth for the prior two years:

                         Month Ended      Month Ended     Month Ended
                           January 31,        December 31,      November 30,
                           2013*   2012     2012   2011     2012   2011
Sales Growth
Comparable Store Sales
Stores                     7   %     11 %     8  %     11 %     11 %     7  %
Online                     24  %     41 %     69 %     21 %     22 %     38 %
Total                      10  %     15 %     15 %     12 %     13 %     10 %
                                                                         
Wholesale Net Sales        14  %     23 %     12 %     34 %     20 %     1  %
                                                                         
Total Net Sales            11  %     15 %     14 %     14 %     10 %     9  %
                                                                            

*Preliminary, subject to adjustment

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 January 31, 2013, 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
athttp://www.americanapparel.net. In addition, American Apparel 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 Reports 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, Inc.
John J. Luttrell, 213-488-0226
Chief Financial Officer
or
ICR, Inc.
John Rouleau, 203-682-8342
Managing Director
John.Rouleau@icrinc.com
 
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