American Apparel Q1 Sales Surge Upward

In Industry News, Reports, What's New by Accessories Staff

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.”