American Eagle Outfitters (AEO), Abercrombie & Fitch Co. (ANF): A Bust in Back-to-School Season Could Paralyze These Retailers

Nevertheless, a disappointing September could hobble the remainder of the year, said analyst Quintiliano. “Generally speaking, if back-to-school doesn’t work, it’s very hard to get holiday right.”

Looking towards tomorrow

American Eagle Outfitters (NYSE:AEO)’s downbeat second-quarter guidance appears to forecast a gloomy back-to-school season for teen retailers, likely riddled with weak traffic, lackluster demand, and inevitable discounting. If September fails, retailers could also find their all-important holiday season in the line of fire as well.

Investors should track the upcoming back-to-school season for the teen retailers, and see whether the anticipated discounts occur. Investors should also watch to see whether an exciting fashion item or trend emerges. American Eagle Outfitters (NYSE:AEO), Abercrombie & Fitch Co. (NYSE:ANF), and Aeropotstale are all tirelessly searching for a spark to energize September.

As overall investments, none of the teen retailers appears extremely attractive , as all have to deal with the ever-changing minds of teenagers. The best in breed would have to be Aeropostale, Inc. (NYSE:ARO), who is the only of the three which has increased its total store count since 2009.

Ryan Guenette has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article A Bust in Back-to-School Season Could Paralyze These Retailers originally appeared on Fool.com.

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