Thursday, August 22, 2013

The 3 As of teen fashion are not cool anymore

The 3 As of teen fashion - Abercrombie & Fitch (ANF), Aeropostale (ARO) and American Eagle Outfitters (AEO) - are not cool anymore

That was the message this morning of a horrendous financial update from Abercrombie & Fitch (ANF). Same-store sales at the teen apparel giant, including Web commerce, slid 10 percent, and profit fell by one-third, to $11.4 million. Results were particularly bleak in the U.S., where revenue declined 8 percent; overseas sales actually rose 15 percent.

Maybe Abercrombie and its Hollister brand have simply fallen out of favor with its target demographic. So says Erik Gordon, a professor at the University of Michigan’s Ross School of Business: “One generation of customers has moved on, and the next generation doesn't see Abercrombie as cool,” he told Reuters (TRI).

Teens’ financial struggles, however, seem to extend past any one brand. AĆ©ropostale (ARO) is also having trouble separating them from their lawn-mowing earnings and ice-cream-scooping tips: Earlier this month, the mall-focused retailer cut its outlook for the summer quarter and projected a loss. Yesterday, American Eagle Outfitters (AEO)forecast third-quarter profit less than half of what analysts expected. “The environment has been extremely challenging,” American Eagle CEO Robert Lee Hanson told analysts. “With high teen unemployment, there is intense promotional competition for every dollar.”

ANF vs ARO vs AEO vs S&P500  (2 years)

Other teen and young adult retailers:
  • BEBE bebe stores, inc.
  • BKE The Buckle
  • EXPR Express, Inc.
  • GES Guess?
  • GPS The Gap Inc.
  • LTD L Brands Inc
  • TJX The TJX Companies
  • TLYS Tilly's 
  • PSUN Pacific Sunwear 
  • RUE rue21, inc.
  • URBN Urban Outfitters
  • WTSL The Wet Seal
  • ZUMZ Zumiez Inc.
  • APP American Apparel: Acquired by Canadian apparel maker Gildan Activewear (GIL), Feb 2017.
All teen retailers above: finviz charts (day's change):,ARO,AEO,TJX,GPS,URBN,GES,BKE,TLYS,PSUN,APP,EXPR,BEBE,ZUMZ,RUE,WTSL,LTD


Please note:

  • 4/22/16: Aeropostale confirms delisting by NYSE; shares to begin trading on OTCQX Market under the symbol AROP
ARO monthly chart

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