Shares of American Apparel shot to a new 52-week high on Wednesday when it hit $1.92 in intra-day trading. The stock rallied over 20% after the clothing company said sales would range between $652mil and $660mil for the year. The positive outlook created investor confidence this week and Brean Capital gave the stock a “buy” rating.
"We have set a three to five year goal to grow our business to business wholesale channel a minimum of 25% by improving the functionality and offering of our wholesale online store, expanding the assortment of product offered to our wholesale customers and increasing the reach of our sales force," said CEO Dov Charney, in a statement.
Earlier in the week American Apparel announced financial results for its fourth quarter and year ended December 31, 2012. In addition to reporting a solid quarter, last month, same-store sales bumped up 10%. Net sales were up 13% for year and 10% for the fourth quarter. Comparable retail store sales were up 13% for the year and 7% for the fourth quarter. Online sales were up 30% for the year and 42% for the fourth quarter. Wholesale sales were up 12% for the year and 19% for the fourth quarter.
Dov Charney, has also stated, “We are pleased with our fourth quarter results that again show solid growth and continuing momentum in all business segments and almost all major geographies. Significant sales growth, operating expense control and the acceleration of leverage of our fixed costs allowed us to increase EBITDA performance to $17.8 million for the fourth quarter of 2012 from $9.1 million for the fourth quarter of 2011. For the full year, EBITDA increased to $36.6 million from $14.5 million in the prior year. Although we are pleased with this growth, we are focused on continuing to improve our financial performance. During this past year, we have carefully invested in systems and infrastructure to facilitate future growth.”
As of March 1, 2013 American Apparel had approximately 10,000 employees and operated 251 retail stores in 20 countries, including the United States, Canada, Mexico, Brazil, United Kingdom, Ireland, Austria, Belgium, France, Germany, Israel, Italy, Netherlands, Spain, Sweden, Switzerland, Australia, Japan, South Korea and China. American Apparel also operates a global e-commerce site that serves over 60 countries worldwide.
Shares of American Apparel closed $1.88 up 22.88% on Wednesday.