Aeropostale Leads in Sales

Article Excerpt

AEROPOSTALE INC. $21.34 (New York symbol ARO; SI Rating: Extra Risk) (646-485- 5410; www.aeropostale.com; Shares outstanding: 66.8 million; Market cap: $1.4 billion) was one of the few major U.S. apparel chains to post higher sales in January. Same-store sales rose 11%, and sales of women’s and men’s clothing were strong. By comparison, same-store sales fell 20% at competitor Abercrombie & Fitch in January, 22% at American Eagle and 23% at the Gap. Fashion trends are fickle, and consumers may abruptly switch to rival brands with more stylish offerings or lower prices. However, today’s teens favour Aeropostale’s fashions, and its lower prices give its merchandise an added advantage in a difficult economy. Aeropostale is a buy. buy…