US fashion chain American Apparel posted a 3% rise in like-for-like sales for the third quarter, driven by a strong performance sales in the UK and Europe.

The growth was seen across its store portfolio as well as its wholesale and online businesses. Wholesale net sales grew by 10% and total net sales increased by 5% to $141 (£90m) for the three months to September 30.

Chairman and chief executive officer Dov Charney said: “Comparable store sales were positive in both our store and online channels and we saw a return to solid sales growth in our wholesale channel. As we enter what is historically our strongest quarter of the year, we are optimistic that if current sales trends continue we will continue to see substantial improvement in our overall financial performance.”

According to The Independent on Sunday the retailer posted the UK results for 2010 at Companies House last week with sales down from £10.5m to £7.3m and a profit of £10,236. However chief financial officer John Luttrell said the decline has been reversed in 2011 with UK sales now positive. “We love the UK and the UK loves us,” he said.

The US chain has 15 stores in the UK but said it is looking to “cautiously expand”.

American Apparel restructured its finances earlier this year and now has $20m (£12.8m) from investors to aid its turnaround.

At the beginning of August, the retailer said it had narrowed its losses for the three months ended June 30 as losses fell to $213,000 (£130,000), down from $14.7m (£8.98m) in the same period a year earlier. Sales increased slightly to $132.8m (£81.3m) up from $132.7m (£81.2m).