What’s trending in Retail
Consumer Discretionary
Each week, The Retail Tracker offers an insightful perspective on retail, fashion and consumer trends and what it means for the stocks. So far this year, Garage is a standout, nailing the “sexy x comfy” aesthetic for teens and taking share from Aerie and Pink. Gap and Old Navy are “crushing it” with consistently strong assortments, offsetting tariff challenges through fewer markdowns. Meanwhile, Urban Outfitters and Nuuly are gaining traction, with Nuuly emerging as a promising rental and tech-driven play. Aritzia is showing good momentum with its best assortment in some time. Department stores may be in free fall, but the best Macy’s stores have never looked better. In contrast, Lululemon is losing its way, expanding beyond its core and diluting its brand identity, while Bath & Body Works' range of new items is exhausting.
Edition: 214
- 27 June, 2025
American Eagle Outfitters (AEO)
Consumer Discretionary
The Retail Tracker felt AEO had been distracted for a while - launching premium denim, promoting aggressively at Aerie, opening Offline stores quickly, buying Quiet Logistics - it felt frenzied. Today, the company seems more focused. Real changes can be seen, not just one season, but more consistently at its core Eagle brand. The denim looks outstanding. The fashion tops are selling. The colours, the merchandising and the marketing are all improved. If AEO can continue this through fall, it is setting up very well for holiday gifting. This should see the stock head back towards $20 before making further progress in 2024.
Edition: 170
- 29 September, 2023
American Eagle Outfitters (AEO)
Consumer Discretionary
Corporate access - Daniel Insights will be hosting a call with AEO’s Shekar Natarajan (EVP / Chief Supply Chain Officer), on Wednesday, 9th November at 11am EST. Shekar will be discussing Quiet Platforms’ strategy of building a collaborative commerce network for retailer and consumer brands. The new network enables customers to gain instant nationwide coverage through a trusted portfolio of carriers using a universal delivery label, eliminating the need for multiple integrations, complex invoicing or lengthy contract negotiations. It currently has 46 brands / retailers utilising the network and is scaling rapidly.
Edition: 147
- 28 October, 2022
American Eagle Outfitters (AEO)
Consumer Discretionary
AE brand continues to see higher promotional activity with full price and clearance assortments now offered at 25% off - while slowing consumer spending patterns are likely the primary reason fuelling deeper discounts, JJK are also disappointed in the BTS assortment’s innovation level across both men’s and women's ranges. At Aerie, a key concern is that inventory levels are tracking well above last year, while demand levels moderate. JJK expects discounts to deepen as 3Q unfolds, putting further pressure on the P&L. They cut their FY22 EPS forecast to $1.10 and see no improvement to top line / margin gains until 2H23.
Edition: 140
- 22 July, 2022