The holiday season is all about retail. Investing in this portion of the market, however, needs to be approached before the season of retail madness starts. High-end purchases may or may or may not be the correct option. Basic sit on the couch products, however, may be a good choice. Inexpensive, comfortable and just feeling good, when there may be economic stress involved, are products that may be most profitable. After all, what is better than a sweat shirt, t-shirt or new set of socks when one is feeling down and unemployed… and at a reasonable price.

American Apparel Inc., a manufacturer of basic apparel, works to manufacture apparel used in various casual environments. One might consider the company as an athletic clothing pant manufacturer, although it offers a very large variety of garment offerings. The company offers its variety of t-shirts and other products in 19 countries, through over 270 retail stores.

Moving into the retail season, American Apparel seems to be in a solid profit mode. Third quarter profit rose to $4.1 million, or $0.05 per share. The company also appears to be in the correct place with a solid product line directed at a price sensitive consumer. As one might suspect, same store sales decreased in 2009 v. 2008. There is, however, solid indication that this is changing as the company works to increase the number of retail outlets it operates. The company’s price points are too difficult to ignore and indicate a positive position in this critical time of year.

The company generally offers clothing products that are a staple to most consumers’ wardrobes with the overall significance of the holiday season not being an insignificant aspect to consider. American Apparels’ $4.2 million 2009 net income vs. $2.3 million in 2008 cannot be overlooked either. Given the current economic conditions, this company is on a roll and one that may come out of the holiday season very much ahead.

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