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BMO Capital Markets senior retail analyst John Morris on which teen chains are winning and losing during the holiday season.
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And hello Dennis Delaware now right now and Dave -- of our stocking up series it's never gonna -- looking at teen retailers.
Really taken some hits right now with many of the biggest names actually in the red but which teen chains are winning and losing when it comes.
To the holiday season overall John Morris BMO capital markets he -- analysts.
Joins me right now let's get right to it because one of the team names that surprise me GAAP.
Teenagers -- went back to GAAP.
Why can you believe it now what do we do a lot of consumer focus research and consumer survey work.
In one of the most interesting things that we're honing this here is actually the team the older -- usually is actually going back to the cap -- -- much better product is because they've got a lot better talent.
In place at the organization.
So you've got people -- -- running that and overseeing merchandising have come from some real blue chip names like J.
Crew Nike unit clos.
H&M and they're doing a better job with the product in the teens see it and they're going back.
And they like you're saying colors it's wells are ready to people us socket seven either preserve -- -- street got an outperform forget about that out performs on Urban Outfitters and expressed Urban Outfitters and get another name that really has outperformed this year -- up almost 50%.
Over the last year is as a teenage story -- well.
Well you know it's it it tends to attract the slightly older teen or young adult.
But interestingly enough in our consumer survey -- the -- -- Urban Outfitters the most improved award.
That's because they're getting a little bit of a kiss from the fashion trend you know -- back in a fashion cycle you mentioned collar -- collar is working really well but there's also a lot of styles in terms of tops.
Although you we haven't -- seen strong fashion -- and a number of years.
The in the teens see this of urban and this year really good offering and they're going back and they like what they put this.
Asia's say that what you do it party your research which I think is is great if you actually give teenagers money you send them to the malls -- and we see what they want -- -- and what you learn from Matt what do you like about the behave well.
So all the interestingly thing that's come up this -- is for the first time in in recent memory 345 years.
The teens are actually trading up.
I know it's counterintuitive but they're they're very focused remembrance -- -- in the past let's let's anymore money that it it means that they're going from it's a value purchase we found before that they needed a coupon or they would shop only on the sale.
Now they know what they want they know they want that particular open knit sweater.
That particular animal -- top.
And they go in and they find it in instead of just getting the value play that maybe the discount retailer they trade up so we see this we see look.
You see Aeropostale they trade up from that two American Eagle from American Eagle -- to Abercrombie.
From H and -- up to express its pretty much across the.
Don't think there are myself I am right now you -- -- -- market perform on the stock right now and frankly the last six months is it's lost about 20% of its value in the is that again for the kids yeah walking away a little bit from -- Aeropostale have a lot of -- of tougher time finding where their personality press what they've tried to do this year is -- a little bit more fashion into their assortment.
And it's not really working -- -- known as a brand that's purely on the basis of price and basics.
So they think that they can actually -- liberal or -- -- since the command but I don't think they're gonna beat the likes of perverts when he won her H&M a packet.
One thing that we -- Black Friday what I found fascinating because you -- this is -- -- of course live at the stores following -- yeah.
And a lot of the young -- out of ones that hit the stores at midnight on Black Friday they had bags they -- to -- the Monday after Black Friday all of those -- -- were down what.
-- Well what are the things you see is there's obviously a lot of big pick up a conversion after Black Friday weekend TE commerce so they're not back in the -- necessarily as much as they would have been.
You saw a lot of deals being -- happening in the stores just because the stores are really competing more and more each year against e-commerce in that channel.
So by the time you get to Monday the shoppers not out there is much I think that the stocks recognize that as well.
John Morris I have all the parents out there watching no big gap might be a good last minute holiday gifts for the search -- their teenagers John thank you very much or -- --
