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January 09, 2012  | by: Wendy Vazquez

 

American Apparel

Things seem to be looking up for American Apparel. The American clothing company is taking a break from the bad press, and is actually getting noted for doing something right. We’re used to hearing about scandalous rendezvous that Dov Charney seems to have with some of his employees and how racy the ads are. It’s definitely caused many of us to focus on the dirt that’s constantly being brought up and ignore the fact that it’s one of the few vertically intergrated American clothing companies. However, despite all the scandals in the past couple years, the company’s sales have increased 15% thanks to a little help!

It’s safe to say that after all the bad press, many feared the company would not make it. American Apparel surprised us by reporting that their December’s sales rose by 15%, making it a total of $56.3 million in sales last year. And who do they owe this to? American Apparel’s online sales have completely increased, however the life-saving is owed to Groupon. Groupon.com is a great group-discount site where customers can buy deals on places to go, eat, etc.

American Apparel's Groupon Ad

The reason for success is due to the fact that both companies have similar target customers, young hipsters. According to WWD, American Apparel sold almost 100,000 Groupon deals per week before Black Friday. Customers used the coupons to purchase more than 150,000 garments, which is why December was looking so good for them.

Clearly, with increasing monthly sales American Apparel seems to be doing better. Despite their growth, we must keep in mind that they still owe Bank of America $47.6 million, and $114 million to Lion Capital. Looks like Groupon can’t save the company entirely.

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