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Online summer sales drive American Apparel forward

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Fashion retailer American Apparel has announced another highly successful preliminary online sales this month as the brand recorded a 22 per cent sales increase.

The ethical clothing firm, which has 21 stores in the UK, declared $55.9m total net sales for June 2013 - an increase of seven per cent over June 2012. However, the company’s most rapid growth has been at its global e-Commerce site, which serves over 60 countries worldwide.

The UK online retail market was worth an estimated £78bn in 2012 and is expected to grow as e-Commerce and Omni-channel platform trends continue among retailers.

Posting a sales percentage increase of 23 per cent in January and February this year, 24 per cent in March and an impressive 38 per cent in May, the store has captured the imagination of online consumers.

Its only weak month was in April where it announced a one per cent decrease in online purchases.

Andrew Fowler, e-Commerce expert and UK Country Manager of Apptus Technologies, said that “brands who do not understand their customers and head online will fail.” He added: “There is no denying that the future of retail is ecommerce. Ecommerce retailers now need to stay ahead of the curve by taking advantage of emerging trends, technologies and consumer behaviour and creating an optimised online experience.

“Remember, the modern online customer wants it all. They are conscious of time and money and want a great customer experience, the ease of home delivery and the one-to-one service of a boutique.”

American Apparel expects profits to further increase throughout the summer into July and August.

Dov Charney, Chairman and Chief Executive of American Apparel, Inc said that July sales were solidly positive in retail and online channels and that he expected “a meaningful increase in wholesale net sales this month when compared to the prior year.” He added: “I am excited with the seven per cent increase in comparable store sales in June, particularly since it is on top of the 19 per cent increase achieved in June 2012.”

In April 2011, there were fears that the company could go bankrupt after “extraordinarily challenging world-wide economic conditions” created substantial doubt that the company would be able to continue as a going concern.

It now appears that these concerns are starting to alleviate after positive sales growth now point towards a recovery well underway.

The retailer also posted a modest preliminary sales increase of five per cent in its stores during the second quarter of 2013.

Published on Tuesday 09 July by Editorial Assistant

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