Back-to-school at American Eagle

The US teen market continues to have threats as brands from abroad enter the market and younger brands arise. However, American Eagle (NYSE:AE) has managed to do their homework in understanding what the consumer wants and has managed to stay afloat as a favorite among teens. According to a recent survey among 110 teens done by Business Insider, 64.15% prefer American Eagle over Abercrombie & Fitch (NYSE:AF) and Aeropostale.

As we shopped back-to-school floor sets last week, we visited American Eagle in New York and found them driving their new denim just in time for the holiday. “ Revolutionary 4-way stretch for advanced body contouring that won’t bag out”, is the description to their new denim technology. The new technology has been applied to key silhouettes like the skinny, cropped and jegging.

Aerie too is being pushed as they had reported it was gaining positive response from consumers. Floor space for Aerie seems to have increased and their offers on intimates are in the same price realm as what you could find over at Victoria Secret (NYSE:L Brands).

Our View

As we have shopped American Eagle in the past months we continue to see they strive to keep their feel in-store and online fun, not only with the atmosphere, but also with their product. They have been keeping up with trend-led product at prices that are reasonable.

Though teens favor American Eagle over long time rival Abercrombie, it is crucial they continue to follow through with their new releases and listen to consumers across all the channels.

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