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Denim: Back To School 2016

During the back-to-school season we are keeping a close eye on the denim trends by key retailers and noted a few changes this season

· Denim fabrics with a high tech component (comfort) have been key, with a few retailers using it in their marketing campaigns across channels.

· The Skinny jean and Jeggings still remain important, however, this year there is an increased focus on destroyed denim and slashed knees, part of the ‘90s Nostalgia.

American Eagle (NYSE: AEO) had one of the strongest campaigns and showed true innovation in their denim as they launched a four way stretch denim fit. Their key price range was $39.95- $54.95 with a special promotion of BOGO 50% off.

We expect AEO, Urban Outfitters (NYSE: URBN) and H&M (STO:HM-B) to be the denim winners during the back-to-school season. The core price range at these stores are $30-$60 and they are leading with right trend driven product.

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