The Buzz

All markets and investing news all the time

American Apparel back in fashion

March 5, 2013: 12:35 PM ET

Click chart for more on American Apparel

Shares of American Apparel (APP) took off Tuesday, after the retailer reported strong earnings and sales.

American Apparel's stock rallied more than 16%, although it's trading well below $2.

Still, the retailer has had a string of wins lately. In addition to reporting a solid quarter, American Apparel said sales would range between $652 million and $660 million for the year.

Just last month, same-store sales bumped up 10%.

"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.

Analysts and investors alike seem to like what they're hearing. Brean Capital initiated coverage with a "buy" rating and StockTwits traders weighed in.

Hawks and Dovs: $APP shows signs of a turn: $$ Bullish

Cute reference to the CEO's name, TalentedBlonde. He's certainly sounding upbeat about the retailer's future. "Although we are pleased with this growth, we are focused on continuing to improve our financial performance," Charney said in the earnings release.

American Apparel, we haven't seen anything yet. Everything coming together in a perfect storm of profit + massive brand building $APP Bullish

Struggling retailer turns things around? There's an $APP for that. American Apparel up 20% pre-market on surprise Q4 profit & better sales.

All signs are certainly pointing to that. Of course, with a stock trading around $1.50, the road may be long and winding. But you've got to start somewhere.

"@StockTwits: American Apparel Swings To Q4 Profit. Jumps after the bell $APP" < awesome

Join the Conversation
Fear & Greed
Sponsored by
About This Author
Catherine Tymkiw
Catherine Tymkiw
News Editor CNNMoney

Catherine Tymkiw is a news editor at CNNMoney where she helps oversee breaking news coverage and futures planning. Previously, she was the investing editor. Prior to joining CNNMoney, she was the online editor at Crain's New York Business and has nearly two decades of reporting and editing experience. She tweets @ctymkiwcnn

To view my watchlist

Not a member yet?

Sign up now for a free account
Stupid Stock Move of the Day
#StupidStock Move of the Day! Yes, Urban Outfitters may be finally turnings things around. But $URBN up 17%? Seems a bit excessive, no?
Most Popular
Powered by VIP.