The Prospect Of American Eagle Outfitters Is Worse Than Expected.

Despite last month's American Apparel Inc. (NYSEMKT:APP) rush to raise the three quarter expectations, it is actually teenagers. Apparel industry The overall downturn was still in the doldrums. Net profit fell by 64% in the three quarter of November 1, 2014, down from 24 million 903 thousand US dollars in the same period last year to US $9 million 35 thousand, and earnings per share declined from US $0.13 to US $0.05. After adjustment, EPS increased from 0.19 US dollars last year to US $0.22, which is basically in line with Wall Street's expectations.

However, the AEO group's fourth quarter forecast is sluggish. The Group expects Q4 adjusted EPS to be US $0.30 -0.33 US dollars, with a slight decrease in revenue compared with 1 billion 40 million US dollars in the same period last year, and a decline in same store sales. This is expected to be lower than Wall Street's US $0.35 EPS expectation, which basically meets the income expectation of US $1 billion 30 million.

After Thursday, American Apparel Inc. (NYSEMKT:APP) shares fell 6.88% to 12.86 dollars.

As of the three quarter of November 1, 2014, AEO group's revenue declined slightly, from 857 million 300 thousand US dollars in the same period last year to 854 million 300 thousand US dollars, and same store sales fell 5%. In the three quarter, the group's gross profit increased by about 6%, from $298 million 900 thousand in the same period last year to $315 million 500 thousand. Gross profit margin The increase was 200 basis points to 36.9%, while operating profit plummeted by about 45%, from 41 million 836 thousand US dollars in the same period last year to US $23 million 83 thousand, and operating margins dropped 220 basis points to 2.7%.

On Thursday, American Apparel Inc. (NYSEMKT:APP) shares also fell by 3.83% to close at $13.81.

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When the typical American fashion representative Gap meets the European fast fashion in the Chinese market, its choice is not to imitate or to converge. In the words of the foregoing people, "Gap is actually a brand with its own attitude." In the past two years, the trend of fashion is basically controlled by the European fast fashion such as ZARA and H&M. Even these two brands have become the brand of word-of-mouth in China, and become the object of many garment enterprises. Gap did not follow the direction of ZARA and H&M from product design, or insisted on making the casual casual style of jeans, khaki trousers and T-shirts in the most simple and comfortable way.

In the aforementioned industry perspective, Gap's products are indeed somewhat different from the mainstream, but "every brand has its own tonality, and Gap insists on it very well." When you find that more and more other brands are following European fashion, "they are making tight, short crotch and low waist jeans, while Gap's American leisure still puts comfort and comfort in the first place." To a certain extent, it also reflects the original intention of the founder Doris and Don Fisher in creating Gap brand: people can easily find a real pair of jeans.

Wang Zhu's impression is that Gap always adheres to this concept in its products. "Fit and comfort are the most important pursuit, not the fashionable and fashionable waist pants." Those who knew the Gap also admitted that the version of American jeans is much better than that of the European style and is much more comfortable.

He believes that in the future, as we slowly realize that "wearing clothes is to make ourselves feel comfortable, rather than simply chasing the fashion, the concept of fashion may be changed, or a popular regression. At that time, we will see if Gap's persistence is meaningful."

In addition, the person also said, "in terms of quick response, ZARA is 15 days, H&M is 21 days, and Gap is 90 days, and it has never emphasized that it should become a faster response and a small number of brands."

In terms of the presentation of terminal stores, most of Gap stores are taking the road of integrated stores. As the product range provided by Gap has expanded from the original jeans to men's wear, women's wear, children's wear, baby wear, even maternity dress, accessories and personal care products, the single store area is mostly 1000+ square meters, hoping to become a "clothing supermarket facing the whole family".

According to Wang Zhu, this way of operation has been in Gap for a long time. "At first, Gap would feel that the cost of acquiring a customer is very high, so consider how to increase the depth of customer purchases." But many consumers interviewed told the new financial reporter that they would not buy a family's clothes in a brand store, or they would have a choice. More importantly, this way may make consumers feel that the brand image is blurred.

However, the actual situation is that more and more brands are taking the mode of large store integration stores, and the industry has not yet had a clear view. But Gap has been insisting on doing so, "we want to make the product whole." He said.

In addition, Gap has its own set of choices in the choice of Chinese brands. Barton (James Button), senior manager of Smith Street business consulting (Shanghai) Limited, has publicly stated that Old Navy will encounter many competitors if it enters China.

It is true that similar leisure brands such as the United States and Semir, and the Jinjiang sports brand that have been transformed in the past two years, will become their rivals. In Barton's view, the high-end brand Banana Republic is likely to achieve higher profit margins. But in the end, Gap decided to introduce Old Navy to the Chinese market first, because Ke Weijie thought it would be "the least difficult and the most opportunity".

The next step when Banana Republic will enter China is not yet conclusive, but it is certain that "every step of Gap in China is very prudent."

Those familiar with Gap said that the development of Gap in China is not fatal at present, but because the big market environment has changed, and it may be challenged in the short term. "Unless the environment continues until it is not suitable for its development, there will be no big problem for it. Now that way, when the American leisure comes back one day, its chance will come. "