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Teen apparel stores see secondary brands have a problem
Arden m, Which targets women down in their 20s, Is a sister chain to teenapparel outlet Wet Seal, And is afflicted with a sales slump. long time Wet Seal Inc. Is trying to improve results with new management and a better collectibles assortment, Other retailers are facing difficulties.Many teen retailers who rely on the backtoschool season for a huge part of their sales are running into tough times not only at their main stores, But also at the secondary brands often aimed at a different group that they hoped would cushion them from such swings.Adding a second or even third store brand can be a way for retail stores to reinvest money during boom times, But it may turn into a bigger challenge than many retailers realize and a money drain if the economy turns south,[link widoczny dla zalogowanych], Said Stifel Nicholas analyst richard Jaffe,when you're good at dressing 7 to 14yearold girls, It doesn't invariably make you good at dressing teenage girl or a 25yearold, he explained.Two casualties so far have been Limited Too stores, Which are all being transformed into owner Tween Brands Inc.'s lowerpriced and betterperforming the legal brand, And tryout, The urban apparel side of the otherwise beachy Pacific Sunwear of idaho Inc.Following among the list of weakest backtoschool seasons in years, Might other teen retailers' secondary store brands be gone by the time courses are out? Analysts say it is most likely,It's tough to wait it out if you're not outperforming in this organic, Jaffe claimed.Abercrombie Fitch, famous for its clothing aimed at teens, Is finding it difficult to revive its Ruehl chain, which is aimed at older shoppers. the business said that secondquarter sales at established stores fell 4 percent overall as a 3 percent rise at its namesake stores did not offset a 22 percent drop at Ruehl stores. Samesecure sales at its surfinspired third retain and collect brand, hollister company, Fell 9 proportion,There's no question Abercrombie has figured out the teen segment pretty darn well, Jaffe claims. "But they may have clearly missed on young adult segment with Ruehl,Abercrombie executives have said vehicle is taking a waitandsee approach with the brand, nevertheless even though samestore sales have declined, The loss generated from Ruehl has stabilized,It's fair to say that we'll be watching the sales trend in Ruehl very closely as we get to the end of the season and beginning of next year, chris Nuzzo, Abercrombie Fitch's v. p,second in command of finance, Said in August when private information released its quarterly earnings.with regards to Wet Seal and its Arden B stores, the company reported last week that secondquarter samestore sales fell 1.8 amount at its namesake stores and sank 13.8 portion at Arden B.Wet Seal is hoping the revert of Sharon Hughes, An executive involved in the creation of Arden B, is likely to resuscitate it. Hughes left the company in 2002 but returned in February as chief retailing officer for the brand,We're just starting to see product, Said Roth Capital Partners analyst elizabeth Pierce. "So far I'm greatly urged, But I recognize headwinds remain really difficult,The one talked about in the sector is Urban Outfitters Inc, with which has found success with all three of its brands, consist of Urban Outfitters, Anthropologie and Free citizens.Its samestores sales rose 13 per cent in the second quarter on growth across all its brands, Including 7 percent at its Anthropologie women's clothing and home essentials chain, 10 percent in its Free People bohemianchic brand and 19 percent growth at its namesake clothing and interior decor stores,[link widoczny dla zalogowanych],you can give their management team a ton of credit for their discipline and focus,[link widoczny dla zalogowanych], Pierce wanted to say.Retailers' whose secondary concepts are doing well continue to be cautious. u. s Eagle Outfitters Inc. Said during a business call with investors that its Martin + Osa store results were improving, And expected to break even by 2010. But it has stopped prep any new Martin + Osa stores, Which target 28 to40yearold people, Until it sees results for the better half of the year.controlled others retrench, Some teen retailers are still progressing new brand concepts. Aeropostale corporation. Is building a children's concept. American Eagle starts a new line, 77kids,[link widoczny dla zalogowanych], for the kids ages 2 to 10. The line is expected to be sold online during this fiscal year, With brickandmortar stores arranged for 2010.But Pierce said it will be difficult to launch a successful brand in today's economic conditions,It's tough to be in an early stage of growth in this market place, it is especially touch and go, She defined. "I couldn't survive a bit surprised if we see more fall out,/p>
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