Teen Retailers Struggle in Economy

The teen sector, which has typically been considered immune to economic ups and downs, has been suffering since last year. American Eagle reported weaker than expected same store sales saying that they are working to control discounts. Aeropostale, the big winner of teen retail during the recession, did not meet expectations but still rose 3%. Hot Topic, one of the few retailers on top, posted a 7.1% increase in same-store sales. Buckle was also up. All four retailers are holding the line on expense and margins. Zumiez posted a larger than expected 18% decline, while Abercrombie & Fitch Co saw a 34%...

Aeropostale Closing Jimmy’Z Stores

Teen apparel retailer Aeropostale Inc. said Monday it will close its Jimmy’Z business, including all 11 Jimmy’Z stores in the second quarter of fiscal 2009. Aeropostale said shuttering the business would help the company focus on growing its core Aeropostale brand and rolling out its next U.S. retail business, which will target younger shoppers. The Jimmy’Z brand was aimed at women and men aged 18 to 25, which is slightly older than its core demographic. During the first half of fiscal 2009, Aeropostale expects to book about $5 million in additional pretax charges, including severance costs, related to the store closures. The company did not disclose the number of affected...