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American Apparel lagged on key metrics before firing CEO

Article from: 
US
Thu, 19/06/2014 - 22:17
By: 
Ted Marzilli
American Apparel

American Apparel had been lagging in major perception and potential sales metrics by millennials for some time before the company’s board voted to remove founder and CEO Dov Charney on Wednesday night.

At the beginning of the third quarter 2013, American Apparel’s overall brand health began to lose ground with millennials, while an average of its rivals such as H&M, Abercrombie + Fitch and American Eagle increased to new highs.

Since last fall, about 2 to 3% of millennials say they have made a purchase at American Apparel, while the average for an index of its peer group scored about 5% during that time.

Purchase consideration, a key indicator of future sales, has also lost ground relative to the rest of the sector: since last July, 7% to 9% of adults 18 – 34 say they would consider American Apparel when shopping for clothes, while for its rivals, the average percentage has been a steady 12% to 13%.

American Apparel has also been trailing its niche retail category in the important Buzz score, an especially important metric for the youth market and a strong indicator of any positive or negative media attention. Buzz score asks respondents: "If you've heard anything about the brand in the last two weeks, through advertising, news or word of mouth, was it positive or negative?"

Looking back, American Apparel last dominated their niche category’s Buzz score in August 2012 and earlier, hitting peak Buzz scores of 10 in both April 2012 and November 2011. Over the past eight months, the teen/millennial retail sector has been hovering at a 6 Buzz score on a range from -100 to 100, with zero being equal positive and negative feedback, American Apparel has fluctuated between -1 and 3, and is now tracking at a neutral zero.

American Apparel, the teen/millennial sector and the discount department store sector were measured with YouGov BrandIndex’s Purchase Consideration, Current Customer and Buzz scores. All respondents are adults between the age of 18 and 34.

Index Scores: American Apparel, Teen Clothes Sector
Index Scores: American Apparel, Teen Clothes Sector
Purchase Consideration: American Apparel, Teen Clothes Sector
Purchase Consideration: American Apparel, Teen Clothes Sector
Current Customer: American Apparel, Teen Clothes Sector
Current Customer: American Apparel, Teen Clothes Sector
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