• Q3 net loss down 24% to US$7.2m
  • Net sales up 5% to $140.9m
  • Retail comparable store sales up 3%

American Apparel chairman and CEO Dov Charney said he was “encouraged” after the troubled retailer narrowed its third quarter losses on improving sales and margins.

Improving online sales and a 10% rise in wholesale revenues helped net sales to rise 5% in the three months to 30 September.

Meanwhile, gross margins improved to 53.2% from 52.2% last year, boosted by increases in sales prices and improvements in manufacturing labour efficiencies.

“I am encouraged by the improvement in our third quarter financial performance and continued momentum of our business,” said Charney.

“In the month of October, we saw strong sales in the US, Asia, Australia and Europe markets. For the year, we have also seen record sales in our online channel.

“With the combination of improving sales, a reduction in raw material prices and continued efficiency in our manufacturing processes, we believe the prospect is favourable for further improvement in our fourth quarter and fiscal 2012 financial performance.”