Shoshy Ciment/Business Insider
- American Eagle outperformed its competitors in the first quarter of 2019 - its undergarments brand, Aerie, is largely responsible for the success.
- Shares of Urban Outfitters (URBN) have dropped nearly 15.9% in the last three months.
- We visited both retailers to see why American Eagle is outperforming its competitors. The answer was clear.
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The struggle has been real for retailers selling to teens and young adults. American Apparel and Aeropostale filed for bankruptcy in 2016 - Charlotte Russe wasn't far behind.
American Eagle Outfitters (AEO) and Urban Outfitters (URBN) have managed to stay afloat, but they aren't entirely in the clear.
American Eagle reported a 6% increase in same-store sales for the first quarter of 2019, though shares of the company have dropped 22.2% in the past three months. Still, the fact remains that where other retailers have fallen behind, American Eagle has managed to soar and outperform its competitors.
Shares of Urban Outfitters - a branch of parent brand URBN - have dropped nearly 15.9% in the last three months.
Both young adult retailers have their draws, but a visit to each reveals why American Eagle is consistently outperforming Urban Outfitters and the rest of its competitors. Urban Outfitters was messy and filled with trash across the store, while American Eagle's showroom was neatly organized. The body-positive marketing campaign of Aerie also explained why American Eagle is doing so well.
Here's what else we saw: