American Apparel Inc. surprised Wall Street with a fourth-quarter profit late Monday. Investors returned the favor with a double-digit spike in the company’s shares in after-hours trading.
The Los Angeles based retailer also provided strong guidance for the new year and laid out longer-term goals, including the addition of 60 to 70 stores within the next three to five years.
In the quarter ended Dec. 31, net income came to $4.9 million. A year ago, loss was $11.2 million.
Sales grew 9.8 percent, to $173 million from $157.6 million, as comparable store sales were up 7 percent in the quarter, while comparable online sales were up 42 percent.