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Posted on September 20th, 2012, by

The Presidential elections in the USA produced a significant impact on international markets, which is basically determined by high expectations of companies operating in the American and international markets concerning possible positive changes in the economic situation in the USA. One of leading American retailers, American Apparel Inc. The company is based in the USA and its stock symbol is APP.

Stock trade before and after the elections

American Apparel Inc. has demonstrated a positive trend to the growth of its stock prices. In fact, before the elections the company’s stock trade fell below 5.00, while shortly after the election the company has stopped its downturn in stock trading and started to increase its stock prices steadily and exceeded 6.50, while at the present moment its stock prices are close to 7.00.

Steps undertaken by the company

At the moment, American Apparel Inc has attempted to reduce costs of production by means of cutting jobs and attempted to promote its products on new markets.

Plans for the holiday season

The company plans substantial discounts for the holiday season that is a part of the traditional policy of American Apparel Inc, which reduces its prices, especially during the Christmas holidays. This step is supposed to maintain stable revenues of the company due to high volume of sales.

My prognosis

In all probability, the company will face a very difficult challenge in the nearest future, because the current growth of its stock prices may be short-running because there are still a few, if any, positive changes in the American apparel industry and American economy at large. In addition, the competition from the part of other companies, especially from developing countries, steadily grows undermining the currently-shaken position of the company even more. Hence, the company can survive only on the condition of a fast economic reforms and governmental support.

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