PacSun recently decided to go dark on monthly comps reporting, and they're not alone. The three A’s of teen retailing — Abercrombie & Fitch Co., American Eagle Outfitters Inc. and Aéropostale Inc. — just ended their participation. Although the move is part of a larger trend among companies seeking refuge from the spotlight of monthly disclosure, the recent developments could be indicative of precipitous pressure in the teen space.
“Teen has been an overstored segment,” said Weeden & Co. analyst Amy Noblin. “There had been oversupply and underdemand in teen for a while.”
“A lot of management teams have realized that if they are going through business expansion, any strategic changes or a turnaround, doing that out of the limelight…is advantageous,” said Michael Dart, head of private equity at Kurt Salmon. “It diminishes pressure.”
Full article from WWD.
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