Wholesale Revenues Spur American Apparel Gains
Supplier Powered By Ad Specialty Sales
Powered by sales in the advertising specialty industry, Counselor Top 40 supplier American Apparel's (asi/35297) wholesale net sales increased 14% in January, an upward surge that continued the trend of revenue gains the supplier experienced in 2012. "The imprintable wholesale division of the company is experiencing positive momentum as a result of improved conditions in the ad specialty arena," said Dov Charney, Chairman and CEO of the Los Angeles-based clothier.
Overall, American Apparel reported that its total net sales for January topped $46.4 million, an 11% increase. The rise included a 24% increase in online sales. "We believe the online segment will grow significantly," said Charney, who was also excited by the 7% uptick in brick-and-mortar store sales. "Our most profitable stores are in Tokyo, Beijing, London, Sydney and New York. We see an opportunity to open stores all over the world."
In 2012, American Apparel's total sales shot up 13% to $616.7 million, a rise that included a 12% gain in wholesale business. "Seeing our momentum carry into 2013 gives us confidence that this will be a strong sales year," said John Luttrell, executive vice president and chief financial officer. "Even without relying on additional store openings, our sales could increase by 6% or greater this year."
With reported 2011 North American advertising specialty sales of more than $90 million, American Apparel is the 16th largest supplier in the industry, according to Counselor. With its 12% gain in its wholesale business in 2012, Counselor expects the company's industry sales to have topped $100 million in 2012.