Teen shopping buoys same-store sales

By Alexandria Sage

LOS ANGELES (Reuters) - Teen retailers in the United States proved a bright spot in April, as young men and women bucked the recent consumer saving trend affecting the apparel industry to shop and spend as the weather warmed up.

"The numbers for the most part exceeded expectations, and that was helped in part by better traffic as the weather got better, the calendar shift, and for a lot of the retailers, heightened promotional activity," said Needham & Co analyst Christine Chen.

Teens are largely sheltered from macroeconomic issues that crimp spending, such as falling home prices or higher gasoline prices. Still, some chains that cater to this group have struggled in recent months, with March same-store sales showing disappointments from popular stores for young people such as Abercrombie & Fitch Co (ANF.N: Quote, Profile, Research, Stock Buzz) and American Eagle Outfitters Inc (AEO.N: Quote, Profile, Research, Stock Buzz).

But the sector fared better in April, as stores offered more warm-weather looks just in time for spring break.

Aeropostale Inc (ARO.N: Quote, Profile, Research, Stock Buzz), which Oppenheimer & Co analyst Roxanne Meyer labeled a "standout in retail," was the obvious winner.

The chain, which sells casual, colorful clothing to young men and women, posted a whopping 25 percent rise in April same-store sales, well above average expectations for a 7.1 percent gain.

Moreover, the chain raised its first-quarter profit forecast, saying it now expects net earnings of 25 cents per share, up from an earlier view of 20 to 22 cents per share.

Other retailers whose April results beat the Street included Abercrombie & Fitch, whose 6 percent same-store sales gain exceeded the view of 2.3 percent, and American Eagle Outfitters, which posted a rise of 2 percent compared with analysts' expectations of a same-store sales decline of 0.6 percent.