Thursday, July 5, 2012

American Apparel, Inc. (APP) Releases Preliminary June and Q2 Sales

American Apparel is a vertically integrated US-based manufacturer, distributor, and retailer of branded fashion basic apparel. The current fiscal month ended on June 30, 2012, and the company announced preliminary total net sales increases of 16% when compared to the previous year. Year-over-year store sales also increased 19% and wholesale net sales increased an estimated 8%. Robust quarter sales increases are also preliminarily reported, with comparable store sales increasing 12% year-over-year, and whole sale net increases of 10%.

“We are very pleased to report strong sales performance across all distribution channels and geographies and these results again exceeded our expectations,” stated Dov Charney, Chairman and CEO. “In the month of June 2012, more merchandise was sold to customers than for any June in our history. On a per store basis, annualized June 2012 in-store sales are trending only 8% less than the historic high set in 2008 and we think we can surpass that historic level within the next 12 to 18 months.”

Due to the record volumes in recent financial reporting periods, American Apparel expects to be able to leverage store, factory, and corporate overheads. The company plans to continue to tightly monitor margins and generate significant portions of sales through full-price selling. Depending on performance, American Apparel plans to continue to expand and open as many as 50 additional stores in the next 3 years. Finally, American Apparel is continuing to build its cash flow and improve earnings performance with the intention of being able to refinance existing higher cost debt at substantially lower rates in late 2012 or 2013.

American Apparel is headquartered in Los Angeles, CA. Currently, the vertically integrated retailor employs 10,000 staff and operates 253 stores in 20 countries. All manufacturing and distribution operations are located within a few square miles in Los Angeles. Additionally, American Apparel operates a wholesale business which sells high quality, American–made t-shirts and other apparel to distributors and screen printers. Finally, in addition to the afore mentioned operations, American Apparel operates an online e-commerce retail website.

For more information please visit: www.americanapparel.net

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