And Social Media's Favorite Teen Retailer Is...

In a report published Wednesday, Wunderlich analyst Eric Beder said that a social media study conducted over a two-week span indicated the overriding theme(s) that are influencing fashion and shopping patterns, giving an insight into the performance of various retailers.

The social media study was conducted using Facebook, Instagram and Twitter, with a focus on the trends in the apparel space. "This study assesses consumer acceptance regarding brands, fashion, and relevant topics across the most popular social media platforms in order to determine what’s trending and what’s not," analyst Eric Beder said.

Social media activity was taken as an indicator on account of its increasing use by consumers to connect, interact and shop new trends. On the other hand, retail firms also use social media to spread awareness of new products and strengthen their engagement with core consumers.

In the report Wunderlich noted the key points from the study:

• Abercrombie & Fitch Co. ANF (Rated Sell) - This company continues to focus on the styles and colors of its dress category as well as the versatility of its basic category. "It so happened that the most popular post this week included a stereotypical Abercrombie picture of shirtless male models. We believe that transition to a non-sexual advertisement will not please all of its core consumers," Beder said.
• American Eagle Outfitters AEO (Rated Hold) - Dress styles remain the focus of American Eagle's range of products. "Different styles such as kimonos, sundresses, and rompers are gaining traction among the core consumer, and we believe this could push 2Q sales."
• Aeropostale Inc ARO (Rated Hold) - "Aeropostale continues to showcase its summer offerings in outfits, which is very eye pleasing to fans. We believe the outfit strategy may allow for higher units per transactions, as Aero is pushing for greater penetration for its accessories," Beder wrote.
• Guess? Inc GES (Rated Buy) - Guess introduced and focused on its new campaign with Gumball 3000, which is a special collaboration that includes limited time apparel. "This artistically remarkable campaign proves that Paul Marciano knows exactly where he wants to take Guess, and may draw more consumer interest in the brand," Beder mentioned.
• Urban Outfitters, Inc. URBN (Rated Buy) - Diversity of categories continues to be key to the success of Urban Outfitters as a lifestyle brand. The higher priced and better quality assortment offer higher margins for the brand.
• New York & Company, Inc. NWY (Rated Buy) - The company continues to focus on its Eva Mendes assortment, which could cause "resurgence in the brand image," since the company has introduced its new Mother’s Day collection with its on-point fashion dress assortment. "We believe New York and Co. is on the right track to highlight Eva Mendes as a brand ambassador to continue to draw traffic into its stores," the report said.