LONDON, January 17, 2013 /PRNewswire/ --
Recently released retail figures for December look positive for Apparel Stores, showing that American's pushed on through fiscal cliff fears and impressed with their spending. As such, StockCall research team has completed detailed technical analysis report on The Gap Inc. and American Eagle Outfitters Inc. after yesterday's market close. Sign in today for see those reports for free at http://www.stockcall.com/signup
According to the Commerce Department's report, in December, U.S. consumer spending rose by 0.5 percent over November. Core-sales, not including autos, gas or building materials sales, grew by 0.6 percent marking the second straight month of core-sales gains which is a positive indicator for fourth quarter results. Benefitting from this positive data, Apparel stores such as American Eagle Outfitters Inc. (NYSE: AEO) and The Gap Inc. (NYSE: GPS) have been trading in the green in recent sessions. Moreover, 2013 has started with a number of positive signals such as a gradually improving job market, turnaround in the housing sector and a lower fuel prices which normally translate in more discretionary spending from consumers. The current flurry of positive news have prompted StockCall analysts to release their latest technical report on American Eagle Outfitters, and this is available for free at http://www.StockCall.com/AEO011713.pdf
The competitive environment remained a challenge for apparel stores over the holiday, but many industry players such as Gap Inc. [Free Technical Analysis on GPS] [(1)] nonetheless impressed by topping analysts' estimates. Gap reported a 5% surge in its same-store sales for December, with overall sales for that time period amounting to $2.08 billion. Results came on the back of a thriving promotional campaign for the holidays, but also due to the performance of its North American brands.
Teen-Apparel store American Eagle Outfitters has also reported positive results regarding its same-store sales with a 5% increase. Its results, however, covered the whole of its fourth quarter ended January 08th, including the holiday seasons. Most Stores have also worked hard during the holidays to attract and entice shoppers with last-minute discounts on gifts and rising home values helped to make shoppers feel like they could afford a few treats.
Moving forward, there are concerns that the New Year, with its new taxes and smaller paychecks, could see a decline in consumer spending. However, industry players seem focused on boosting their businesses profitability this year, with Gap instituting streamlining measures such as store closure and others undertaking strategic expansion into profitable areas, such as luxury goods.
- The Gap Inc. Technical Analysis [ http://www.StockCall.com/TheGapInc011713.pdf ]
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