American Apparel Inc. said Tuesday that its fourth-quarter net income rose 30 percent as same-store sales grew and the company opened new stores for its trendy apparel.

But the company projected revenue growth below analyst expectations.

The Los Angeles manufacturer and retailer, which last week announced an $80 million investment from a British private equity firm, reported fourth quarter net income of $3.9 million (5 cents per share), compared with $3 million (6 cents) a year ago. Sales grew to more than $145 million as same-store sales increased 11 percent and the company added 32 new stores.

Analysts surveyed by Thomson Reuters on average expected net income of 7 cents per share. There were 37 percent more shares outstanding than in the year-ago quarter.

For the full 2008 year, net income fell 9 percent to $14.1 million (20 cents). Sales grew 41 percent to $545 million as same-store sales rose 22 percent.

Chief Executive Dov Charney said the company met its own full-year targets, and will benefit from the new investment from Lion Capital LLP, much of which will be used to pay off older financing that was coming due.

"I strongly believe that our company is better positioned than at any time in its history to succeed and deliver on the great potential of the American Apparel brand," Charney said in a statement.

The retailer said that in 2009 it expects revenue in a range of $575 million to $600 million. The company, which operates more than 260 stores worldwide, expects to open 25 to 30 stores in 2009. Analysts are expecting revenue of $639 million.

American Apparel shares rose 26 cents, or 11 percent, to $2.66 in morning trading on the New York Stock Exchange Alternext.

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