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American Apparel's First Profits In Years Put The CEO's Sex Scandals In The Rearview Mirror

Mar 9, 2013, 22:06 IST

MoguliteAmerican Apparel CEO Dov CharneyAmerican Apparel recently reported its first net income profit after 12 straight quarters of losses.

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That's an amazing turnaround for a brand which a few years ago was close to bankruptcy; its CEO surrounded by lawsuits alleging sexual harassment.

Now, comparable same-store sales are showing increases of 7 - 13 percent.

Q4 revenues rose to $173 million. And CEO Dov Charney made good on his promise — made to Business Insider back in June — of booking more than $600 million in revenue for the year.

Even the stock is up.

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Things are different now at the U.S.'s most-watched fashion advertiser (a company known to have girls in bikinis wash its roof). In the past two years, AA has undergone a wrenching series of changes to get the all-American clothing house back on the right track.

Here's how Charney did it.

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