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American Apparel Gets Its Groove Back

February 28, 2013

Los Angeles based, unisex apparel specialist, American Apparel has been on a significant upswing in the last couple of years. Further the company continues to experience tremendous growth in all segments of their operation.  If you don't believe me, here's some impressive results to chew on.

In May, American Apparel released its earnings for the 1st quarter of 2012. Here's a snapshot of the results.

Comparable Store Sales +14%
Comparable Online Sales + 25%
Wholesale Sales +17%

In August of last year, American Apparel reported results for the 2nd quarter of 2012. The results were as follows:

Comparable Store Sales +14%
Comparable Online Sales + 28%
Wholesale Sales +10%

Then in November, the company released its earnings for 2012 Q3. The results were again impressive

Comparable Store Sales +20%
Comparable Online Sales + 21%
Wholesale Sales +6%

While results for the 4th quarter has not yet been released, here's some additional information that has been announced.

November Results:

Comparable Store Sales +11%
Comparable Online Sales + 22%
Wholesale Sales +20%

December Results:

Comparable Store Sales +8%
Comparable Online Sales + 69%
Wholesale Sales +12%

January Results:

Comparable Store Sales +7%
Comparable Online Sales + 24%
Wholesale Sales +11%

Clearly, both American Apparel's brand and products are again strongly resonating with their consumers.

I recently read an article which noted hottest selling bags in all of Tokyo is American Apparel's Cities bag (which retails up to $42). Did these consumers think that they were going to Burberry or Coach? American Apparel sold more than 24,000 of these bags in Tokyo alone last year. Not bad for an ancillary product.

Furthermore, I saw a magazine feature which reported that some Canadian schools recently banned leggings from being worn. The article cited the influence of companies such as American Apparel has on teenage students and fashions.

My wife tells me that sometimes I see things through rose-coloured glasses. With this in mind, please consider that the media are once again, frequently bashing American Apparel for being naughty, raunchy and morally bankrupt in their advertising campaigns and other promotional initiatives. As their broker, this is music to my ears. From the sounds of it, American Apparel is now and again, one of North America's fashion leaders and trendsetter, turning heads with their products and subsequently their growing bottom line.

In this regard, I am pleased to announce that American Apparel is again looking to expand in Canada in select markets. Focus will be on super regional shopping centres and downtown high streets. Size required is 2500-3000 sq.ft.

American Apparel operates 251 locations in 20 countries, including the United States, Canada, United Kingdom, China, Japan, Australia, Mexico, Italy...etc The company now has over 10,000 employees.

For more information on American Apparel, please visit their website at www.americanapparel.net.