American Apparel Inc. Announces Preliminary October Sales
American Apparel Inc., a vertically integrated manufacturer, distributor and retailer of branded fashion basic apparel, announced preliminary sales for the month ended October 31, 2012 and reported that total net sales on a preliminary basis increased 5 percent to $59.1 million when compared to the month ended October 31, 2011. Between the same periods, comparable retail and online sales on a preliminary basis increased an estimated 5 percent and wholesale net sales increased an estimated 17 percent. The Company estimates retail stores suffered an approximate 5 percent reduction in comparable sales from store closures related to Hurricane Sandy.
"October has historically been one of our strongest months based on the significant uptick in sales we experience for Halloween," said Dov Charney, chief executive officer and chairman of the board of American Apparel Inc. "Like all other retailers, we were blindsided by Sandy, and with greater New York being our largest market, we estimate we lost in excess of $1.5 million in retail sales due to the storm. Our hearts go out to the victims, and we will be distributing, with the help of our own staff, tens of thousands of garments including socks, T-shirts, thermals and sweatshirts to those most deeply affected. As the preeminent U.S. manufacturer of apparel we are grateful to be in a position to assist in relief efforts, as we did with Hurricane Katrina and at other times of need. We are thankful that our employees came through the storm without injury. We also thank our employees who worked tirelessly to re-open over 25 stores in the region as quickly as they did. At this time our business is substantially back on track in the region. So far in November retail sales are showing signs of strength and we anticipate this trend will continue. Online and wholesale both had a strong October, and I am confident our positive momentum will continue into the Holiday selling season."