Tag - Retailing

American Apparel Inc. (AMEX:APP) is the epitome of “edgy,” yet there is a schizophrenic tinge when analyzing the last large-scale clothing company whose labels read “Made in the USA.”

The Los Angeles company wears the badge of abolishing the garment industry sweatshop while managing to keep its prices low. The fashion genius of founder Dov Charney is lauded, but there are allegations made by former American Apparel employees and others about his seemingly offbeat behavior — including sexual-harassment lawsuits. Montreal native Charney was presented this year with the fashion industry’s “Retailer of the Year” award. 
 
Fashion is a sexually charged industry, and American Apparel’s image kicks that up a notch. American Apparel’s first eight months publicly traded have been rocky, with negative publicity piling up like a mountain of tattered tees in a thrift store discount bin. Those distractions make it difficult to peek under the covers at the financial soundness.

Of the three analysts who follow American Apparel, two rate the stock a “strong buy,” and the other calls it a “buy.” The median price target calculated by Thomson Reuters is $14.50.

In a Sept. 8 report to investors, analyst Mickey Schleien of Ladenburg Thalmann sounded impressed by solid same-store sales and its retail store expansion. Schleien also noted a $54 men’s oxford shirt was added, substantially higher than its T-shirts costing around $20. “Expanding the product line may help capture more customers and generate cross-selling opportunities,” wrote Schleien, who reiterated . . .