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    American Fast Fashion Brand GAAP Increases Profit Forecast Value

    2012/9/7 18:04:00 20

    Fashion BrandGapProfits

     

    Gap, the fast fashion brand in the US, has introduced bright colors.

    Jeans

    And compressed inventory recently announced that it has gained a higher quarterly profit, while the apparel retailer has increased its sales estimate.


    However, as tedious commodities, especially in the competitive back to school shopping season, are hard to attract young people, Aeropostale, a young fashion retailer, has to perform a low price.


    In almost 10 years, the company has been exploring its fashion matching style and losing it to its rival, Inditex group, the parent company of Zara brand.


    However, its main brand has reversed the situation last year.

    The cooperation between the BananaRepublic brand and the TV program "mad man" has been a great success, and the chain corporation has recently consulted a famous American designer, Narciso Rodriguez.


    During the quarter, the group's chain brands such as the OldNavy, the banana and the Republic of bananas increased sales in North America and their profits increased by 28.6%.

    The only unsatisfactory performance is its weaker sales in the European market and declining sales in the same store.


    Steve Nicholas's analyst Richard Jeff said, on the other hand, the Aeropostale brand sells too many basic funds.

    Latest fashion

    The quantity is insufficient, and the youngsters can only buy it at GAAP, resulting in the sale of Aeropostale unsold goods, and no profit can be drawn.


    Geoff noted that the promotion environment for young consumers will continue to be maintained. He said: "we believe that the company will improve accordingly and develop its fashion products as soon as possible."


    The rate of youth employment is at its lowest level since 1964, making more teenagers rely on their parents to support their return to school shopping activities.

    For this reason, many stores that they can afford can face price pressures.


    According to analysts, Aeropostale's brand rival AmericanEagleOutfitters has increased its sales volume by 9% over the last quarter due to its more attractive fashion.


    Aeropostale Brand Company said its return to school shopping season was a steady start, and this season is extremely important for youth products retailers.


    Thomas Johnson, chief executive officer of Aeropostale Brand Company, said: "the pressure on our core business has intensified in the early part of the school shopping season. We think sales and profits will be under pressure for the third quarter."


    At the same time,

    GAAP

    Careful management of inventories to avoid price cuts when shoppers cut down their consumption during the harsh economic situation helped the company to raise its net profit by 3% to 36.9% of sales.

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