Market Overview

American Eagle Is A Standout In The Teen Apparel Space


The specialty teen retailer space is perhaps the most difficult segment to thrive in, but one company is doing exactly that.

As noted by CNBC, American Eagle Outfitters (NYSE: AEO)'s Aerie segment has now shown investors five consecutive quarters of more than 20 percent comparable sales growth.

Aerie is considered to be the closest competitor to L Brands Inc (NYSE: LB)'s Victoria Secret although at a lower price point. In fact, it appears Victoria Secret's losses is Aerie's gains as the American Eagle unit plans on opening 50 new stores in 2017, some of which will be standalone locations and others will be adjacent to its parent company's store.

Aerie has only 190 stores across just 13 states.

See Also: 'The Teen Retailer To Own': Wunderlich On American Eagle

Aerie also appears to be gaining traction from its advertising campaigns, which are known for not air brushing its models. CNBC suggested this has been a critical component of its growth over the years. In addition, Aerie uses data it collects from its website to find deeper trends to better stock the shelves in its stores.

"We are seeing some new statistics in swim that are like, 'Whoa,'" Aerie's global brand president Jennifer Foyle told CNBC. "Market share's up for grabs for sure."


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