Less Beach, More Shopping Trips, Please

August 8, 2007

 beach1.jpgStudents are thinking about fun in the sun — and not about their school wardrobes, apparently. That, at least, is the word from American Eagle Outfitters which posted a surprising 6 percent drop in same-store sales during July on Wednesday 
The teen retailer blamed the weak results on schools across the nation starting later and tax-free days in Florida and Texas shifting to August from July. 
It’s hard to say what kind of effect these shifts will have on other chains that cater to students. Smaller rival Hot Topic, which is struggling to turn around sliding sales, posted a 7.4 percent decline in July same-store sales, saying that 3 percent of that decline was due to the changes in Florida and Texas. 
But unlike at American Eagle, the miss at Hot Topic, which sells music-inspired apparel, accessories, CDs and novelties, was expected, and the chain made no mention of any negative impact from later school start dates. 
Stay tuned for Thursday, when most apparel retailers report July same-store sales figures…


Students all across the country have signed a pledge to boycott American Eagle Outfitters until the brand enforces its code of conduct. The code requires the companys contractors to respect their employees right to organize. When workers at a warehouse in Canada that ships for American Eagle tried to organize for improved conditions, they faced harassment and intimidation from US union busters. Im working with a labor union called Unite Here to let people know about the boycott. If youd like to sign the boycott pledge, go to http://www.AmericanVulture.org.

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