Los Angeles Business Journal

American Apparel Stock Falls on Sales Drop

By Deborah Crowe Thursday, January 9, 2014

Shares of American Apparel Inc. fell more than 18 percent on Thursday after the apparel company said same-store sales fell 6 percent last month.

The Los Angeles clothing manufacturer and retailer also announced preliminary total sales of $60.5 million, also down 6 percent from the same period a year earlier. But preliminary full year sales were up 3 percent to nearly $634 million.

Chief Executive Dov Charney noted that same-store sales had jumped 15 percent in December 2012, so there was a tougher comparison with December 2013, which was preceded by a late Thanksgiving that led to a compressed holiday shopping season.

"Although December was disappointing, and we could face a challenging environment for the remainder of the winter, our management team is energized,” Charney said in a statement. “We are excited about our prospects for spring and summer 2014 as well as for the calendar year as a whole."

Shares closed down 26 cents, or 19 percent, to $1.14 on the Nasdaq.