Direct Line Blog

Times are good for Aeropostale

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While such stalwarts as Macy’s, Abercrombie & Fitch and JC Penney are so far finding the challenges of the new economic reality challenging, Aeropostale is having a great year, posting strong results month after month.

The explanation is simple. The retailer’s target audience – young men and women – are abandoning more expensive, ultra-trendy brands in droves and flocking to the more reasonably priced Aeropostale.

For the four-week period ended May 30, Aeropostale, a mall-based specialty retailer of apparel for young women and men, said net sales for the four week period ended May 30 increased 30% for a total of $132.9 million. Same-store sales increased 19% for the month, compared to a same-store sales increase of 6% in the year ago period. Sales in April increased 31% and in March they increased 13%.

During May, Macy’s reported sales decreased 9.5% and same-store sales were down 9.1%. Abercrombie & Fitch said net sales declined 22% in May and comparable-store sales dropped 28%. Direct-to-consumer sales decreased 10%.
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