Retail is abysmal right now, and apparel is getting totally hammered.
But one segment of that market is holding up pretty well: clothing for teens. The USA Today reports that Buckle (NASDAQ: BKE), Hot Topic (NASDAQ: HOTT), and Aéropostale (NYSE: ARO) were the only specialty stores this week to report positive same-store sales in March.
Mary Brett Whitfield, senior vice president at the management consulting and research firm Retail Forward, told the newspaper that "Teens are still growing and might actually need new clothes."
There's some validity to that point but as any parent will tell you, most teens buy clothes far more frequently and in much greater quantities than growth dictates.
But for investors the real question is this: Will the relative strength in teen apparel last into the all-important back-to-school shopping season? I doubt it. Weakness in retail and restaurants and soaring unemployment rates mean fewer summer jobs for teens -- and more competition from older, more experienced workers who have recently been laid off. Teens are at the bottom of the job food chain, and unemployment among teens will soar this summer. That means less money for back-to-school shopping and cash-strapped parents less able to help.
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Reader Comments (Page 1 of 1)
5-06-2009 @ 1:27PM
Lisa said...
Upcoming women's apparel store is all the talk:
Have you heard the news?? There's a new women's apparel store opening online called kesjuannadomonique.com! It's expected to be very shopper friendly with great prices and a great selection of elegant dresses, trendy sweaters and jeans and beautiful accessories. I'm highly anticipating this store... Mama wants a brand new bag! You guys should check it out
www.kesjuannadomonique.com