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American Apparel posts Q3 retail same-store sales up

13 Nov '07

4 min read

Endeavor Acquisition Corp is pleased to report American Apparel's financial results for the third quarter of 2007. Endeavor filed an amendment to the preliminary proxy statement with respect to the proposed acquisition of American Apparel with the Securities and Exchange Commission on Friday, November 9, 2007.

Endeavor is working towards mailing a definitive proxy statement to shareholders later this month in time for a special meeting of stockholders anticipated to be held on Wednesday, December 12, 2007 for stockholders of record as of November 16, 2007.

The amendment to the preliminary proxy statement includes unaudited financial information for each of Endeavor and American Apparel for the nine month periods ended September 30, 2007 and 2006.

The amended proxy statement also includes additional information with respect to the revised transaction terms in the amended and restated merger agreement announced on November 8, 2007 and filed with the SEC on November 9, 2007.

The information below presents the combined results of American Apparel Inc. (“AAI”) and The American Apparel Group of Canada (“CI”), collectively “American Apparel”, unless specifically noted otherwise.

Quarterly operating results are not necessarily indicative of the results that may be expected for other interim periods or the year ending December 31, 2007.

AAI's interim financial statements for the periods ended September 30, 2007 and 2006 were not required to be reviewed and therefore were not reviewed by an independent registered public accounting firm using professional review standards and procedures.

Certain account balances included in prior period financial statements have been reclassified to conform to the current period presentation.

American Apparel reported unaudited combined sales for the 2007 third quarter ended September 30, 2007 of $106.5 million, a 34% increase over sales of $79.4 million for the three month period ended September 30, 2006.

Retail sales increased 43% to $55.9 million for the third quarter of 2007 as compared to $39.1 million for the same period in 2006, with same-store sales for stores open at least 12 months rising 27%.

At September 30, 2007, American Apparel had 165 stores as compared to 142 stores at September 30, 2006. Wholesale results were $50.6 million for the 2007 third quarter as compared to $40.3 million for the 2006 third quarter, an increase of 25%.

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