American Apparel Gains on Analyst Comments

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Shares in American Apparel Inc. rose nearly 6 percent Tuesday after an analyst said the apparel maker’s second quarter earnings are likely to exceed projections.


Todd Slater, an analyst with Lazard Capital Markets, said in a research note that strong sales in April and May indicate the Los Angeles clothing company will likely exceed forecasted revenues of $124 million and earnings per share of 10 cents.


American Apparel said earlier this month that same-store sales at its retail outlets rose 24 percent in May and 27 percent in April.


Slater added that the company’ stock will benefit after it is included June 27 in the Russell 3000 Index.


Shares in American Apparel closed up 5.5 percent to $6.70 in trading Tuesday.

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