American Apparel, Inc. Announces Comparable Sales for January 2014 Decreased 5% and Wholesale Net Sales Increased 7%

  American Apparel, Inc. Announces Comparable Sales for January 2014 Decreased
  5% and Wholesale Net Sales Increased 7%

Business Wire

LOS ANGELES -- February 6, 2014

American Apparel, Inc. (NYSE MKT: APP), a vertically integrated manufacturer,
distributor, and retailer of branded fashion basic apparel, announced
preliminary sales for the month of January 2014. On a preliminary basis, total
net sales were $45.5 million, a decrease of 1% over the prior year. Comparable
sales decreased 5%, including a 4% decrease in comparable store sales in the
retail store channel and a 6% decrease in net sales in the online channel.
Wholesale net sales increased 7% over the prior year.

The following delineates the components of the changes for January:

                             2014     2013
Comparable store sales
Stores                       (4 )%       7  %
Online                       (6 )%       23 %
Total                        (5 )%       10 %
Sales growth
Wholesale                    7  %        13 %
Total                        (1 )%       10 %

Dov Charney, Chairman and CEO, commented, “We believe that our same store
sales were negatively impacted by the extraordinarily cold winter weather and
winter storms in the U.S. during January 2014. The impact may have been more
pronounced for us as we have a high concentration of stores in the areas
affected by the bad weather. The decline in online comparable store sales was
primarily due to a shift in 2014 sales from the online segment to the
wholesale segment as a result of significant sales growth from an online
distributor, and the effect of a change in the timing of an international
promotion. The 7% growth in wholesale net sales is noteworthy given it is on
top of a 13% increase last January.”

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 February 1, 2014, 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.

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 and liquidity (including the
impact of noncompliance with, and availability under, our debt instruments and
waivers or amendments of those instruments), results of operations, and future
business plans and expectations, including statements related to the effect
of, and our expectations with respect to, the operation of our new
distribution center and future cost, inventory and sales impacts related
thereto. 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: our ability to generate or obtain from
external sources sufficient liquidity for operations and debt service; our
financial condition, operating results and projected cash flows; consequences
of our significant indebtedness, including our relationship with our lenders
and our ability to negotiate with our lenders covenants that will allow for us
to achieve and maintain compliance with our debt agreements, our ability to
generate cash flow to service our debt and the risk of acceleration of
borrowings thereunder as a result of noncompliance; disruptions in the global
financial markets; our ability to maintain compliance with the exchange rules
of the NYSE MKT, LLC; adverse changes in our credit ratings and any related
impact on financial costs and structure; continued compliance with U.S. and
foreign government regulations, legislation, and regulatory environments,
including environmental, immigration, labor, and occupational health and
safety laws and regulations; 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; risks associated with our foreign
operations and foreign supply sources, such as disruption of markets, changes
in import and export laws, currency restrictions, and currency exchange rate
fluctuations; the highly competitive and evolving nature of our business in
the U.S. and internationally; changes in the level of consumer spending or
preferences or demand for our products; our ability to pass on the added cost
of raw materials to customers; our ability to attract customers to our stores;
the availability of store locations at appropriate terms and our ability to
identify locations and negotiate new store leases effectively and to open new
stores and expand internationally; our ability to renew leases at existing
locations on economic terms; loss or reduction in sales to our wholesale or
retail customers or financial nonperformance by our wholesale customers; risks
that our suppliers or distributors may not timely produce or deliver our
products; changes in the cost of materials and labor, including increases in
the price of raw materials in the global market and increases in minimum
wages; our ability to effectively carry out and manage our strategy, including
growth and expansion both in the U.S. and internationally; technological
changes in manufacturing, wholesaling, or retailing; our ability to
successfully implement our strategic, operating, financial and personnel
initiatives; changes in key personnel, our ability to hire and retain key
personnel, and our relationship with our employees; our ability to maintain
the value and image of our brand and protect our intellectual property rights;
our ability to improve manufacturing efficiency at our production facilities;
our ability to operate our distribution facility located in La Mirada,
California without further unanticipated costs, negative sales impact or other
transition issues, including the ability to achieve, as and when planned,
labor cost reductions; the risk, including costs and timely delivery issues
associated therewith, that information technology systems changes may disrupt
our supply chain or operations and could impact our cash flow and liquidity,
and our ability to upgrade our information technology infrastructure and other
risks associated with the systems that operate our online retail operations;
our ability to effectively manage inventory levels; litigation and other
inquiries and investigations, including the risks that we, or our officers or
directors in cases where indemnification applies, will not be successful in
defending any proceedings, lawsuits, disputes, claims or audits, and that
exposure could exceed expectations or insurance coverage; the adoption of new
accounting standards or changes in interpretations of accounting principles;
seasonality and fluctuations in comparable store sales, wholesale net sales
and associated margins; location of our facilities in the same geographic
area; general economic conditions, including increases in interest rates,
geopolitical events, other regulatory changes and inflation or deflation;
disruptions due to severe weather or climate change; disruptions due to
earthquakes, flooding, tsunamis or other natural disasters; 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-Qs for the quarters ended March 31, 2013, June 30, 2013
and September 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
(213) 488-0226
ICR, Inc.
John Rouleau
Managing Director
(203) 682-8342
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