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American Apparel Launching Nail Polish Line
WWD
Matthew W. Evans
December 17, 2009

Fashion retailer American Apparel Inc., known for its edgy advertising and colorful basics, has entered the beauty realm with the launch of an 18-shade nail polish line.

The polishes began rolling out Wednesday and will be carried exclusively at American Apparel's roughly 280 stores in 20 countries. (The retailer carries a few third-party personal care brands, such as Dr. Bronner's Magic Liquid and Smith's Rosebud lip balm.)

"The company, which is well known for its garments' versatility and use of vibrant colors, felt that American Apparel Nail Lacquer was a natural extension of its current product offerings," the firm stated.

Initially, 60,000 bottles have been produced and retail for $6 each, or $15 for a three-pack. The formulas, which are free of dibutyl phthalate, toluene and formaldehyde, include colors such as a minty green hue called Office, Factory Grey and a shade of red called Downtown LA, all of which are inspired by some facet of the Los Angeles-based company.

For instance, the shade called Hassid, a dark black, is a nod to American Apparel's Jewish roots, the firm noted.

"We think this nail polish captures what American Apparel is all about, a Made-in-the-USA, high-quality product in a beautiful range of colors," stated Marsha Brady, a creative director for American Apparel. "Like our clothing, the palette is intended for year-round use. It's a painterly range of colors designed for long-term appeal and creative interpretation. We put equal focus on making sure the polish and the colors were both durable and beautiful."

The beauty launch stands to bolster sales for the firm, which reported in November that third-quarter profits vaulted 78 percent as a shift toward the higher-margin retail operations of its business helped offset a decline in wholesale revenues.

In the three months ended Sept. 30, American Apparel posted net income of $4.2 million, or 5 cents a diluted share, up from $2.3 million, or 3 cents, in the year-ago period. Analysts anticipated earnings per share of 3 cents a share.
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