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Guess if you just heard sales gains were modest for most retailers in September but once shop is bucking a trend by getting on trend by tapping into that -- jeans fat.
-- -- third straight month of gains with same store sales jumping 8% from last year but.
Candy GAAP keep this winning streak going into the holiday season here to -- is -- -- you're the managing director covering specialty retailer terrorists and company dark it's wonderful happens thanks for having me so.
Big -- -- really all about the color jeans which are now working intent colored corduroy from what I understand for the fall winter season.
Thoughts about it certainly about colored bottoms that's been a big fashion trend but I think for the gap continued strong results are also coming from.
Having a complete outfit and so doing better with tops doing better with -- accessories.
I'm sweaters I think it's it's really the whole package that's making GAAP continue to have such solid numbers.
-- made -- for itself by sticking to basics just the usual parts and pieces classics if you will so.
What the trick for the retailers in this group -- sort of mid buying.
Every day retailers if you will -- lack -- better term stick with what you know the basics or work with trends try to invent new things like a gap seems to be doing.
I think it's a question him of being true to who you are in GAAP you know basics you know true they they -- they became well known for doing.
On basic sweats and things like that and a lot of different colors but.
I think is as they'd start to do more fashion was basics with a twist so has always.
Not just a basic but something with a little extra something that made it's special not just -- -- -- -- by a teacher little pocket.
So I think you know today they're they're definitely doing.
Tops that have a lot more interest.
And clearly the color really feeds and of one of their core strengths and its.
Comes from not -- -- colored bottoms -- but then you bring in.
Names like Abercrombie and American Eagle and to be quite honest with you I can't really think there's nothing that sticks out to -- to what they're doing right -- that a problem for those latter two.
No I don't think I I I think that that's a separate issue I think GAAP.
Serves a much broader demographic and their products gotten better and people are beginning to notice the companies doing -- -- marketing to get more traffic into the stores.
So that's really working for them.
American Eagle and Abercrombie -- war you know focusing on eighteen customer younger customer.
What's one doing right to the other one isn't American -- is clearly been performing batter.
I'm stronger numbers very strong core -- business colors also been a core.
American eagle's strength.
Hobble what American Eagle does I think Abercrombie does not one it's gotten a lot more newness of the story there is much more new product.
You fashion's new trends in American Eagle also has -- where they've guide jewelry they've got everything to make a girl a teenage girl going in married it gives -- complete outfit and allows them to compete effectively.
With fast fashion companies like -- OK so from an investment perspective you point out your research -- and that the retailer groups cells for bullet thirteen times forward earnings it's -- relatively cheap vs.
-- he upside going into the holiday season.
It sounds so much too good to be -- -- -- against the backdrop of a broader economic problems.
Well that's the thing is I think you know from our perspective the economy is improving.
Gradually so here you're seeing some better trends.
And I think consumers frankly are tired of feeling you know feeling bad about things they wanna feel more optimistic that color trend -- -- the optimism.
But also for retailers don't forget that last year they got slammed with very high cotton prices this year we've got the -- the tail -- with much lower cotton prices.
Inventories in general of come down a retail so there's less pressure to be promotional.
I'm so all of those things I think go into you know making what could be a pretty pretty decent policies which is gonna -- -- -- for your portfolio.
So I think you know certainly be continue to see good numbers out of GAAP and we think that means continued rising earnings estimate and you gonna say GAAP.
This feeling -- -- -- they also like American Eagle I think same story.
I think the -- equation is gonna continue to go up thanks very information appreciate it -- lack there.
So is President Obama pushing trickle.
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