Invest in American Eagle, Gap, or Abercrombie?

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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.

Other competitors.

-- 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.

Thanks.

So is President Obama pushing trickle.

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