Clothing and accessories retailer American Apparel Inc said first-quarter sales jumped 14 percent, helped by careful inventory planning and better merchandise, sending its shares up 25 percent in after-market trading.

Photo: American Apparel

American Apparel - which has struggled with problems ranging from a long-running sales slump and financial instability to controversies associated with its Chief Executive Dov Charney - also kept it full-year EBITDA outlook of $32 million to $40 million.

"We will be in a position to refinance elements of our higher cost capital structure and significantly reduce our interest expense by late 2012 or early 2013," said CEO Charney, who recently extended his employment agreement with the company.

For the quarter ended March 31, total net sales rose to about $132.7 million, while same-store sales, or those at stores open at least a year, were up an estimated 15 percent.

Sales in March rose to increased 15 percent to $49 million, while same-store store sales rose an estimated 21 percent, the company said.

Shares of the Los Angeles-based company were trading up at 95 cents after the market on Wednesday. They had closed at 76 cents on the American Stock Exchange.