American Apparel, Inc. Announces Comparable Sales for Quarter Ended September 2013 Increased 2% and for Month of September 2013

  American Apparel, Inc. Announces Comparable Sales for Quarter Ended
  September 2013 Increased 2% and for Month of September 2013 Decreased 6%

Business Wire

LOS ANGELES -- October 10, 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 September 30, 2013. Total net sales for
September 2013 were $49.9 million, a decrease of 2% over September 2012.
Comparable store sales for September 2013 decreased 6%, including an 8%
decrease in comparable store sales in the retail store channel and an 8%
increase in net sales in the online channel. Wholesale net sales increased 12%
for the month as compared to September 2012. For the quarter ended September
30, 2013, total net sales increased 1% to $164.1 million, with a 2% increase
in comparable sales and a 3% increase in wholesale net sales.

The following delineates the components of the changes for the month,
quarter-to-date and year-to-date periods indicated:

              September                 Quarter                  YTD
                  2013       2012           2013      2012           2013     2012
                   ^(1)                          ^(1)                         ^(1)
Stores             (8 ) %     14  %         0  %      20  %         5  %     16  %
Online             8   %     18  %         16 %      21  %         19 %     24  %
Total              (6 ) %     14  %         2  %      20  %         5  %     17  %
Wholesale          12  %     (3 ) %         3  %      5   %         6  %     10  %
Net Sales
Total Net          (2 ) %     9   %         1  %      15  %         5  %     14  %

^(1) Preliminary, subject to adjustment. Year-to-date comparable store sales
results have been adjusted to exclude impact of extra leap-year day in 2012.

Dov Charney, Chairman and CEO, commented, “Our negative same store sales for
the month of September were primarily a result of significant difficulties in
the launch of our new distribution center at La Mirada, California, for which
I take responsibility. A multitude of issues, including technical, planning,
staffing and design and integration, resulted in distractions in various
aspects of our operations, including store operations, manufacturing and
product development.

“Whereas the new distribution center was supposed to be (and will become in
the medium and longer term) a state of the art, best in class, facility
carrying the promise of reduced costs and faster order fulfillment, it has so
far been an example of how technology - at least from a short term perspective
- can sometimes work against the success of an organization.

“The good news is we are on track to get our distribution center in a place
where it will help us build a stronger, leaner, larger and more profitable
American Apparel over the next five to ten years. Despite our difficulties, I
am proud that we were able to demonstrate healthy increases in sales in two
out of our three sales channels, a testament to the fact that the American
Apparel brand remains extremely strong and continues to resonate with
consumers and wholesale buyers of clothing worldwide.

“Some additional good news is that we are planning to start opening stores
again. In the next several months, we are going to open stores in Lyon,
France, Stratford, United Kingdom, and Atlanta, Georgia, as well as a new
flagship store in New York City. We are sensing major opportunities overseas
both online and in terms of new store possibilities. Additionally our
wholesale business is showing major signs of strength despite distribution
challenges, and I expect same store sales to be positive in the fourth quarter
in all channels, including online, retail, and wholesale.”

John Luttrell, CFO, added, “I also believe our sales were negatively impacted
by weak consumer spending levels across the retail apparel sector. Although
the distribution center is now performing better from a shipping point of
view, we have experienced, and may continue to incur, higher than expected
distribution center labor costs. In addition, if there are any further
transition issues associated with the new center or if apparel sector spending
is soft in the fourth quarter, our sales and financial results could be
negatively impacted. However, we have recently seen week-over-week reductions
in distribution labor costs, and we believe we will continue to reduce labor
costs during the fourth quarter. Although we are disappointed with the
additional costs and reduced sales caused by the distributions center
transition, we continue to believe we will benefit in the future from our
decision to invest in the new center.”

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 September 30, 2013, American Apparel had approximately
10,000 employees and operated 247 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 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, performance and flexibility;
results of operations; and 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 locations and negotiate new store
leases effectively and to open new stores and expand internationally; the
Company's ability to renew leases at existing locations on economic terms;
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 customers;
the Company's ability to improve manufacturing efficiency at its production
facilities; the Company's ability to improve efficiency at its distribution
facility located in La Mirada, California; 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 risk, including costs and timely delivery issues associated
therewith, that information technology systems changes and the transition to
the new distribution center in La Mirada, California may disrupt the Company's
supply chain or operations and its ability to upgrade its information
technology infrastructure and other risks associated with the systems that
operate our 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
Form 10-K for the year ended December 31, 2012 and Form 10-Q for the quarter
ended June 30, 2013. The Company's filings with the SEC are available at 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.


American Apparel, Inc.
John J. Luttrell
Chief Financial Officer
ICR, Inc.
John Rouleau
Managing Director
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