US Apparel Retailers Witness Mixed Sales Trend

US Apparel Retailers Witness Mixed Sales Trend

US retailers are reporting their quarter ending sales performance. Teen apparel retailers have done well, while older brands are struggling to meet targets.

Teen apparel retailer American Eagle's sales rise 3.2%

Teen apparel retailer American Eagle Outfitters Inc reported a 3.2% rise in quarterly sales, largely helped by demand for its Aerie brand in the holiday shopping season. American Eagle's results, which closely follow rival Abercrombie & Fitch Co's surprise rise in same-store sales, indicate that teen apparel retailers may be winning back young shoppers who were flocking to fast-fashion companies such as Inditex's Zara and H&M. American Eagle has also benefited from controlling inventories to boost margins & responding faster to changing fashion trends. The company said comparable sales in the Aerie brand, which sells intimates and personal care products for women, rose 26% in the fourth quarter ended January 30, topping the 13.5% rise analysts polled by Consensus Metrix had expected. American Eagle's net income rose to US$ 81.7 million, or 42 cents per share, in the quarter, from US$ 61.6 million, or 32 cents per share, a year earlier. The company's net revenue rose to US$ 1.11 billion from US$ 1.07 billion.

Teen apparel retailer Abercrombie & Fitch's comparable sales rise

Teen apparel retailer Abercrombie & Fitch Co reported a surprise increase in quarterly sales at established stores due to strong demand for its Hollister branded clothing in the holiday shopping season. Abercrombie said sales at stores open at least 12 months rose 1% in fourth quarter ended January 30. Analysts on average were expecting comparable sales to decline 0.10%, according to research firm Consensus Metrix. Net income attributable to the company rose to US$ 57.7 million, or 85 cents per share, in the quarter, from US$ 44.4 million, or 63 cents per share, a year earlier. Net sales fell to US$ 1.11 billion from US$ 1.12 billion.

Apparel retailer Gap's full-year profit forecast misses estimates

Apparel retailer Gap Inc forecast full-year profit below analysts' estimates, hurt by a strong dollar and continued weak sales in its Banana Republic & Gap brands. Gap said it expected adjusted profit of US$ 2.20-US$ 2.25 per share for the full-year ending January 2017. The forecast includes a pre-tax impact of over US$ 120 million from a strong dollar, the company said. Analysts on average had expected a profit of US$ 2.42 per share, according to Thomson Reuters I/B/E/S. Gap's net income fell by a third to US$ 214 million, or 53 cents per share, in the fourth quarter ended January 30.