Abercrombie, American Eagle Less Popular Among Teens

Abercrombie & Fitch Co, Aeropostale Inc., and American Eagle Outfitters Inc have fallen out of fashion with fickle U.S. teen shoppers and aren’t likely to win back their business anytime soon, according to the Huffington Post.

Teens don’t seem to be very interested in what they are wearing, or at least not that into the basics provided by these companies.

“The teen retailers seem to be not in style or in vogue at this point in time for their target consumers,” said Bryan Keane, portfolio manager of the Alpine Global Consumer Growth Fund. “That usually does not turn around quickly,”

According to Huffington Post, American Eagle, Abercrombie, and Aeropostale have seen a fall in their sales, and one reason is because they cater to a much smaller audience then their competitors H&M and Gap Inc.

H&M and Gap Inc both cater to an audience of all ages where the 3As (American Eagle, Abercrombie, and Aeropostale) all cater directly to teens.

“This team (young shoppers) wants to be fashionable but they don’t want to spend a lot of money, and fast fashion works very well for that,” said Eric Beder, a Brean Capital analyst, who has a “sell” recommendation on Aeropostale.

It’s true, many teens want to be fashionable, but at what price? The Huffington Post reported that H&M sells V-neck men’s t-shirts for as low as $5.95, while Aeropostale t-shirts on clearance on Wednesday were priced at $6.99.

“We believe youth spending has likely diverted to other categories,” Abercrombie CEO Mike Jeffries told analysts on a conference call.

With this economy, which are teens more likely going to purchase? A t-shirt regularly priced at nearly six dollars, or an older, clearance sale t-shirt priced at nearly seven dollars?

American Eagle, Abercrombie, and Aeropostale are all looking at some rough numbers this fall if their sales numbers don’t pick up soon, which means they have to market their products better to their teenage audience.

[Image via Shutterstock/A.KaZaK]

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