American Apparel generated $545.1 million during 2008, well up from the $387 million it recorded in 2007. But its net income dipped from $15.5 million a year ago to $14.1 million. The year ended Dec. 31.
The decline in profit was primarily due to $12.1 million in shares given to manufacturing employees in August, and $1.1 million in payroll taxes related to the shares.
Separately, the company had added manufacturing employees throughout the year, raising costs and diminishing productivity until these employees could be brought up to speed. The company calculates that their productivity reaches expected levels within three to four months after hire.
In 2008, online retail operations accounted for 7.2% of the company
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