American Apparel Fraying At The Edges

Jun 02, 2010 | Updated May 25, 2011

American Apparel Inc., the Los Angeles clothing maker and retailer known for its colorful fashions, racy advertising and outspoken chief executive, is fraying at the edges.

The company's fourth-quarter profit plunged 21% to $3.05 million, and its stock closed Thursday at $3.16 -- less than half its high of $6.97 late last April. By comparison, rivals such as H&M, Gap and Urban Outfitters in the young-adult sector are performing well.