Monday, March 23, 2009

American Apparel's Profits Rise

Our client American Apparel Q4 profit rises 30%

Clothing maker American Apparel Inc's fourth-quarter profit jumped 30 percent, helped by growth in retail sales at its U.S. Retail, Canada and international business segments, but forecast 2009 sales below analysts' estimates.

The company, which plans to open 25 to 30 stores in 2009, said it expects net sales of $575 million to $600 million in 2009 and income from operations in the range of $55 million to $65 million.

The company -- known for its brightly colored basics, pro-labor policies and racy marketing -- posted a fourth-quarter profit of $3.9 million, or 5 cents a share, compared with $3.0 million, or 6 cents a share, a year earlier.