American Apparel, Inc. (Amex: APP) today announced that its Board of
Directors has authorized the repurchase of up to an aggregate of $25
million of its outstanding common stock.
It is expected that repurchases will be made from time to time on the
open market at prevailing market prices or in negotiated transactions
off the market. The repurchase program is expected to continue over the
next twelve months unless extended or shortened by the Board of
Directors. The actual number and timing of share repurchases will be
determined at American Apparel's discretion and will be subject to
market conditions, applicable legal requirements and other factors.
“This share repurchase program reflects the
confidence we have in our business and our commitment to preserving
shareholder value. By authorizing this repurchase program, it is our
intent to address some of the dilution from the warrant redemption
completed in March of this year,” said
American Apparel’s Director of Corporate
Finance and Development, Adrian Kowalewski.
About American Apparel
American Apparel is a vertically integrated manufacturer, distributor,
and retailer of branded fashion basic apparel based in downtown Los
Angeles, California. As of May 15, 2008, American Apparel employed over
7,000 people and operated over 185 retail stores in 15 countries,
including the United States, Canada, Mexico, United Kingdom, Belgium,
France, Germany, Italy, the Netherlands, Sweden, Switzerland, Israel,
Australia, Japan and South Korea. American Apparel also operates a
leading wholesale business that supplies high quality T-shirts and other
casual wear to distributors and screen printers. In addition to its
retail stores and wholesale operations, American Apparel operates an
online retail e-commerce website at http://store.americanapparel.net.
Safe Harbor Statement
This press release, and other statements that American Apparel, Inc. may
make, may contain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements are statements that are not historical facts and include
statements regarding, among other things, the company's future financial
condition and results of operations and the company's prospects and
strategies for future growth. In some cases, you can identify
forward-looking statements by words or phrases such as "trend,"
"potential," "opportunity," "believe," "comfortable," "expect,"
"anticipate," "current," "intention," "estimate," "position," "assume,"
"outlook," "continue," "remain," "maintain," "sustain," "seek,"
"achieve," and similar expressions, or future or conditional verbs such
as "will," "would," "should," "could," "may" and similar expressions.
Such forward-looking statements are based upon the current beliefs and
expectations of American Apparel's management, but are subject to risks
and uncertainties, which could cause actual results and/or the timing of
events to differ materially from those set forth in the forward-looking
statements. American Apparel cautions that forward-looking statements
are subject to numerous assumptions, risks and uncertainties, which
change over time. Actual results could differ materially from those
anticipated in forward-looking statements and future results could
differ materially from historical performance. The following factors,
among others, could cause actual results to differ from those set forth
in forward-looking statements: business conditions, including risks
associated with foreign markets, international business and online
retail operations, increases in materials or labor costs and employee
matters; the company's relationships with its lenders and its ability to
comply with the terms of its existing credit facilities; changing
interpretations of generally accepted accounting principles; changes in
the overall level of consumer spending; changes in preferences in
apparel or the acceptance of the company's products and the company's
ability to anticipate such changes; the performance of the company's
products within the prevailing retail environment; availability of store
locations at appropriate terms and our ability to open new stores and
expand internationally; the possibility that the company's suppliers and
manufacturers may not timely produce or deliver the company's products;
financial non-performance by the company's customers, primarily in the
wholesale business; inquiries and investigations and related litigation;
continued compliance with U.S. and foreign government regulations;
legislation or regulatory environments; requirements or changes
adversely affecting the business in which the company is engaged;
fluctuations in customer demand; management of rapid growth; intensity
of competition, both domestic and foreign, from other apparel providers;
changes in key personnel; costs as a result of operating as a public
company; general economic conditions; increases in interest rates;
geopolitical events and regulatory changes; as well as other relevant
risks detailed in the other filings that the company makes with the
Securities and Exchange Commission and available at www.sec.gov.
You are urged to consider these factors carefully in evaluating the
forward-looking statements herein and are cautioned not to place undue
reliance on such forward-looking statements, which are qualified in
their entirety by this cautionary statement. The forward-looking
statements speak only as of the date on which they are made and the
company undertakes no obligation to publicly update such forward-looking
statements to reflect subsequent events or circumstances.
