American Apparel Off on Dip in Q1 Profit

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Shares in American Apparel Inc. dipped more than 10 percent Wednesday morning after the clothing retailer reported meek first quarter results.


American Apparel posted first quarter net income of $1.1 million (2 cents pert share) a 35 percent decline from $1.7 million (3 cents) in the same period a year earlier due to increased expenses, legal fees and stock-based compensation.


Sales for the Los Angeles-based clothing retailer surged 52 percent to $112 million thanks to a 65 percent increase in retail sales across all segments, the company said. American Apparel ended the quarter with 186 stores, having added 4 in the period.


Shares in American Apparel dropped 12 percent to $7.46 in early trading Wednesday.

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