In its second-largest acquisition, Amazon buys the company for $970 million.
The economy doesn’t appear to be hurting American Apparel Inc. For the third quarter web sales grew by 70.3% to $10.9 million, while total sales and store revenue grew by 45.2% and 65.4%, respectively.
The bad economy doesn’t seem to be bothering American Apparel Inc.
For the third quarter web sales for American Apparel, No. 262 in the Internet Retailer Top 500 Guide, grew by 70.3% to $10.9 million from $6.4 million in the third quarter of 2007. In comparison total sales and retail sales grew by 45.2% and 65.4%, respectively. The web accounted for 7% of sales in the quarter.
Overall American Apparel posted net income of $2.3 million on sales of $154.8 million in Q3 vs. net income of $6 million on sales of $106.6 million in the prior year. Q3 retail sales rose year over year to $97.4 million from $58.9 million. “While we are cognizant of the economic difficulties worldwide, particularly in retail, we remain cautiously optimistic that our products represent a unique value to consumers even in a weak economy,” says CEO Dov Charney. “As we look at 2009, having already experienced so much growth in 2008, we plan to tailor our expansion plans accordingly with an eye on the overall economic environment and our goal to generate significant free cash next year."
For the first three quarters, web sales for American Apparel increased by 78.3% to $28 million from $15.7 million in the prior year. Overall in the first three quarters American Apparel generated net income of $10.2 million on sales of $399.4 million, compared with net income of $12.4 million on revenue of $275.8 million. Retail sales totaled $243.3 million vs. $146.8 million in the prior year.