It seems that back to school is going to be choppy depending on the companies fashion mix. American Eagle may have that mix according to this article.
"Our fashion consultants feel that American Eagle is positioned well for back to school compared to rival teen retailers, particularly Hollister," she wrote, referring to a competing teen chain run by Abercrombie & Fitch Co. "Since our buyers were very enthusiastic about AE's new assortments, we think that this could be an opportunity for it to gain market share."
I need to do more recon on AEOS but they seem to have an interesting assortment of jeans that are pretty affordable. I think some kids not wishing to pay Abercrombie's outrageous markup may start going to American Eagle to make their dollar stretch out more.
I think teens who drive will really be hit by these higher gas prices because they don't make nearly as much to absorb the added cost. So that kid for instance will be more likely to buy the $34.50 AE Artist Stretch Jean instead of the $69.50 Emma Low Rise Boot Cut.
This hypothetical girl going back to school will save $35 by buying pretty similar jeans from AEOS instead of ANF. That represents a tank of gas, some shoes, a blouse, or something in a similar price range.
Also if it is the parents buying the clothes it gets even worse. They might have an Adjustable Rate Mortgage and may have taken on too much house then they can afford. Thus those parents are now facing higher monthly mortgage payments, $3.50 gas, and inflated prices for food. So even if their daughter complains she is still going to be getting those aforementioned Artist Stretch Jeans. This should be a good deal for AEOS any way you look at it.
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