American Apparel, Inc. Announces Comparable Sales for June 2013 Increased 7%

  American Apparel, Inc. Announces Comparable Sales for June 2013 Increased 7%

Business Wire

LOS ANGELES -- July 8, 2013

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 June 30, 2013. On a preliminary basis,
totalnet salesfor June 2013 were $55.9 million, an increase of 7% over June
2012. Comparable sales for June 2013 increased 7%, including a 5% increase
incomparable store salesin the retail store channel and a 22% increase in
net sales in the online channel. Wholesale net sales increased 16% for the
month. For the quarter ended June 30, 2013, total net sales increased 9% to
$162.2 million, with a 7% increase in comparable sales and a 16% increase in
wholesale net sales.

The following delineates the components of the increases (decreases) for the
months and quarters indicated:

             2013                                                         Q2                   YTD
                                                                      June
                January   February   March   April   May   ^          2013^(1)   2012       2013^(1)   2012
                                                                      (1)
Sales                                                                                          
Growth
Comparable
Store                                                                                          
Sales
Stores           7%        3%         5%      4%      7%    5%         5%         14%        5%         14%
Online           23%       24%        24%     (1)%    38%   22%        19%        28%        21%        25%
Total            10%       5%         8%      3%      10%   7%         7%         16%        7%         16%
Wholesale        13%       2%         (11)%   5%      27%   16%        16%        10%        9%         13%
Net Sales
Total Net        11%       1%         1%      3%      16%   7%         9%         13%        6%         13%
Sales
                                                                                                       

^(1)Preliminary, subject to adjustment.

“June represents our 25th consecutive month of positive comparable store sales
growth,” saidDov Charney, Chairman and Chief Executive of American Apparel,
Inc. “I am excited with the 7% increase in comparable store sales in June,
particularly since it is on top of the 19% increase achieved in June 2012.
Likewise, the 16% increase in wholesale net sales is on top of a 7% increase
achieved for the month ended June 30, 2012. Sales growth was across a broad
range of product categories and demonstrates the strength of our summer
product offering. Thus far, July sales are solidly positive in our retail and
online channels, and we expect a meaningful increase in our wholesale net
sales this month when compared to the prior year.”

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 June 30, 2013, American Apparel had approximately 10,000
employees and operated 245 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 thatthe Companymay make, may
containforward-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, performance and flexibility;
results of operations; future business plans. 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 salesand 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; 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 weather or climate change; and other
risks detailed in the Company's filings with the Securities and Exchange
Commission, including the Company's Annual Report on Form10-K for the year
ended December31, 2012 and Form 10-Q for the quarter ended March 31, 2013.
The Company's filings with the SEC are available atwww.sec.gov. You are urged
to consider these factors carefully in evaluating theforward-looking
statementsherein 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
Chief Financial Officer
213-488-0226
or
ICR, Inc.
John Rouleau
Managing Director
203-682-8342
John.Rouleau@icrinc.com
 
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