American Apparel Q1 Sales Surge Upward

Los Angeles—American Apparel got some good news on Wednesday afternoon following its rebuke earlier this week by a British watchdog agency over its “too sexy” images.

The company, which has been struggling with problems including sagging sales, said its first quarter sales jumped 14%.

For the quarter ended March 31, total net sales rose 15% to about $132.7 million. Wholesale net sales increased an estimated 17%.

“We are very pleased to report strong sales performance in March across all three distribution channels and these results substantially exceeded our expectations,” said Dov Charney, chairman/ceo. “Careful planning to our inventory commitments, merchandising strategy, and product assortment helped to drive our continued momentum.”

Adding that the company reaffirms its full year net income guidance of $32 million to $40 million, Charney said, “As such, we believe we will be in a position to refinance elements of our higher cost capital structure and significantly reduce our interest expense by late 2012 or early 2013.”


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