Wall Street Analyst: Teen Retailers May Swing and Miss

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An acceleration in December promotions likely signaled teen retailers’ fourth-quarter results may come up short, according to Citigroup analyst Jeff Black. Aeropostale Inc. (NYSE:ARO) looks to be in “tough shape” with promotions in the range of about 60%, the highest he’s seen this year, Black said.

At rival Hollister, a unit of Abercrombie & Fitch Co. (NYSE:ANF), and American Eagle Outfitters Inc. (NYSE:AEO) promotions are running at 47% and 25% quarter to date respectively, up about 10% from the third-quarter levels for each chain.

Jeff Black wrote Thursday. “The sector appears on track to disappoint broadly in 4Q barring a quick turnaround in January,” Black said. Abercrombie, American Eagle and Aeropostale shares each were up about 1% in a higher market.

Here’s how other retailers are reacting to the analyst’s note today:

Buckle Inc. (NYSE:BKE): BKE shares recently traded at $41.23, up $0.78, or 1.93%. They have traded in a 52-week range of $33.97 to $47.97. Volume today was 186,803 shares versus a 3-month average volume of 501,778 shares. The company’s trailing P/E is 13.44, while trailing earnings are $3.07 per share.

Urban Outfitters Inc. (NASDAQ:URBN): URBN shares recently traded at $27.60, up $0.38, or 1.4%. They have traded in a 52-week range of $21.47 to $39.26. Volume today was 829,748 shares versus a 3-month average volume of 3,435,250 shares. The company’s trailing P/E is 20.35, while trailing earnings are $1.36 per share.

Pacific Sunwear of California Inc. (NASDAQ:PSUN): PSUN shares recently traded at $1.71, up $0.05, or 3.01%. They have traded in a 52-week range of $1.11 to $5.70. Volume today was 576,138 shares versus a 3-month average volume of 809,933 shares. The company’s trailing earnings are $-1.56 per share.

Gap Inc. (NYSE:GPS): GPS shares recently traded at $18.90,. They have traded in a 52-week range of $15.08 to $23.73. Volume today was 1,363,276 shares versus a 3-month average volume of 5,623,810 shares. The company’s trailing P/E is 10.88, while trailing earnings are $1.74 per share.

To contact the reporter on this story: Jim Wilkerson at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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