American Apparel shares rise after strong August
LOS ANGELES (AP) — Shares of American Apparel Inc. rose Thursday after the retailer said a key sales figure rose 24 percent in August.
The Los Angeles-based company said the increase included a 24 percent boost from its retail stores and a 19 percent increase from its online store for the four-week period ended Aug. 28. The figure is a key metric because it strips out the impact of newly opened and closed locations.
CEO Dov Charney said the performance was driven by growth across almost all major market and product categories. He said there are still significant ways for the company to improve store productivity.
In the short term, he said the company will focus on tighter inventory management, store renovations and the completion of a distribution center to improve the efficiency of store shipments.
American Apparel will release for the full month of August on Sept. 10.
Shares of American Apparel were up 5 percent at $1.08 in afternoon trading Thursday after rising as high as $1.17 earlier in the session. They are 11 percent below their 52-week peak of $1.21 set in mid-March.