[credit provider=”American Apparel” url=”http://store.americanapparel.net/”]
Just when it looked like things were starting to look up for cash-strapped American Apparel, profits are reportedly getting shaved.Why?
The hipster clothing chain racked up impressive sales gains during the holidays, but profits were squeezed hard as it took steep discounts, including those from a barrage of Groupon offers nationwide, sources told The Post.
American Apparel rang up millions of dollars in the fourth quarter selling cardigans, corduroys and sexy leggings through the daily deals site — a heap of bargains amounting to a “small but material” percentage of the company’s $157 million in total sales during the period, said one source briefed on the company’s finances.
The controversial clothing company has been struggling to turnaround its operations.