Teen Retail Space a Mixed Bag, American Eagle Disappoints (ARO, BKE, AEO, PSUN, HOTT)

Tickerspy’s Apparel Retail Index

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APPAREL RETAIL COVERAGE

Taken together, these companies sell clothing and accessories aimed at nearly every demographic

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Avg. Market Cap:	$8.4B
Avg. P/E Ratio:	19.6
Avg. Div Yield:	0.7%

After strong second-quarter guidance from teen retailers Aeropostale (ARO) and Buckle (BKE) last week, American Eagle Outfitters (AEO) threw investors a curveball this morning when the firm reported earnings. American Eagle’s 17 cents in first-quarter EPS was in line with expectations, but the company forecast a -1 to -2-cent loss in Q2, which is well under analyst consensus of 21 cents in profit per share. The stock slipped by more than -10% on the report.

As a whole, the Apparel Retail Stocks Index is ahead by 2% today as the Dow jumps by triple-digits. The Index is currently underperforming the S&P 500 by -3% over the past month.

Over the course of the past week, performance among the retailers, especially the teen retailers, has been a mixed bag. Aeropostale and Buckle are both up by more than 2.5% for the period. Meanwhile, Pacific Sunwear (PSUN), Hot Topic (HOTT), and American Eagle are all laggards, off by -10% or more.

With the summer already here, and back to school season a few months away, retailers are preparing for what could be an important buying season for both teens and investors. Investors can track the Apparel Retail Stocks Index for performance trends and a suite of other metrics at tickerspy.com.

Tags: AEO, ARO, BKE, HOTT, PSUN