American Apparel Reports Q3 Sales

Wholesale Net Sales Rise 3%

American ApparelCounselor Top 40 supplier American Apparel (asi/35297) announced this morning that its overall sales for the quarter ended September 30 increased 1% to $164.1 million. Wholesale net sales – which includes the company's promotional products segment – rose 3%. For the month of September, total net sales at American Apparel decreased to $49.9 million, a 2% year-over-year decline. Comparable store sales last month fell 6%, including an 8% decrease in comparable store sales in the retail store channel. However, wholesale net sales again showed strength, increasing 12% in September.

"I am proud that we were able to demonstrate healthy increases in sales in two out of our three sales channels, a testament to the fact that the American Apparel brand remains extremely strong and continues to resonate with consumers and wholesale buyers of clothing worldwide," said Dov Charney, chairman and CEO of American Apparel, in a statement.

According to Charney, American Apparel's mixed September revenues were a result of "significant difficulties in the launch" of the manufacturer's new distribution center in La Mirada, CA. "A multitude of issues, including technical, planning, staffing and design and integration, resulted in distractions in various aspects of our operations, including store operations, manufacturing and product development," Charney said.

Even as it sorts through its challenges in La Mirada, American Apparel is still planning to open several new stores over the next few months in Lyon, France, Stratford, United Kingdom, and Atlanta, GA, as well as a new flagship store in New York City. "We are sensing major opportunities overseas both online and in terms of new store possibilities," said Charney. "Additionally our wholesale business is showing major signs of strength despite distribution challenges, and I expect same store sales to be positive in the fourth quarter in all channels, including online, retail, and wholesale."

Ranked by Counselor as the 14th largest supplier in the industry, American Apparel reported 2012 North American ad specialty sales of $96.8 million, a year-over-year increase of 7.3%.