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American Apparel Comp Sales Up

Sales flat in quarter.

American Apparel Inc. said Thursday that it registered a 3 percent gain in June comparable-store sales on a constant currency basis. On an average U.S. dollar basis comps increased 9 percent.

 

With about 40 percent of its stores located outside of the U.S., the struggling retailer, which received a $14.2 million cash infusion from a group of private investors in April, said it profited from favorable currency translation.

 

For the second quarter, the maker of brightly colored basics recorded flat comps sales versus a 16 percent decline, in the year-ago period.

 

On an average U.S. dollar basis, the retailer said this translated to a 5 percent increase, as online sales rose 19 percent and wholesale sales fell 4 percent.

 

Total sales for the second quarter totaled $132 million, which was essentially flat a year earlier, according to the 254-door retailer.

 

“With a continued emphasis on improving manufacturing efficiency, and despite the effect of cotton price increases, we believe ours will be a story of improving sales, improving margins and improving EBITDA [earnings before interest, taxes, depreciation and amortization],” said chairman and chief executive officer Dov Charney. “Our focus will be to optimize product mix in stores, the in-store customer experience and the overall profitability of our store base.”