As
a value-oriented apparel retailer catering to the teen market,
Aeropostale
(NYSE:ARO)
did pretty well during the 2009-2010 period when many other youth
retailers like American
Eagle Outfitters
(NYSE:AEO)
and Abercrombie
& Fitch
(NYSE:ANF)
saw serious sales pressures. Since then, though, it hasn't been
exactly clear that Aeropostale has a workable strategy outside of
pricing - and shrinking price differentials have whittled away the
company's momentum, cash flow and market
cap. The real question for investors, then, would seem to be
whether this company can develop a strong enough merchandising
identity that price is no longer its primary weapon.
To read more, please click the link:
http://www.investopedia.com/
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