American Apparel's First Profits In Years Put The CEO's Sex Scandals In The Rearview Mirror

American Apparel recently reported its first net income profit after 12 straight quarters of losses.

That's an amazing turnaround for a brand which a few years ago was close to bankruptcy; its CEO surrounded by lawsuits alleging sexual harassment.

Now, comparable same-store sales are showing increases of 7 - 13 percent.

Q4 revenues rose to $173 million. And CEO Dov Charney made good on his promise — made to Business Insider back in June — of booking more than $600 million in revenue for the year.

Even the stock is up.

Things are different now at the U.S.'s most-watched fashion advertiser (a company known to have girls in bikinis wash its roof). In the past two years, AA has undergone a wrenching series of changes to get the all-American clothing house back on the right track.

Here's how Charney did it.