American Apparel: An Unusual Bright Spot

Everyone seems to think that the media only enjoys covering the doom and gloom out there in the retail world, but we’re actually happy to see at least one retailer performing well.American Apparel just released its fourth-quarter results, and there isn’t really any bad news to report. The Los Angeles chain is still opening stores and had great numbers to report. The 260-store chain is adding 25 to 30 new units this year. Its fourth quarter boasted a same-store sales jump of 11% and net sales rose 31%, hitting $145.6 million. Net income came in at $3.9 million, up from $3 million during the same period last year.The retailer also recently received an $80 million investment from Lion Capital to pay of debt and fund future growth.Probably the only dark spot out there are the lawsuits directed toward CEO Dov Charney.Can we continue to see such great numbers from American Apparel, or do you think things are bound to change for the retailer in this economy?