Check out who’s in charge at Aeropostale. 
 
No, seriously, who is in charge?
 
The company announced today that Julian Geiger was leaving the teen apparel retailer. (The press release was apparently written under the auspices of the Lawyers Full Employment Act.)
 
But instead of appointing one leader, Aeropostale went with co-CEOs. President and Chief Merchandising Officer Mindy Meads and Chief Operating Officer Thomas Johnson were named to share the top spot.
 
The news release does not detail how Meads and Johnson will divide the CEO duties.
 
What we do know is that the history of corporate America is punctuated with co-CEO arrangements that have gone awry.
 
When Kraft was spun out from Altria in 2001, Roger Deromedi and Betsy Holden were named co-CEOs. The relationship ended with Holden being demoted in late 2003, and eventually leaving the company. Kraft continued to struggle with lackluster innovation and seemingly ever-present restructuring, and Deromedi was out by 2006.
 
John Reed and Sanford Weill ran Citigroup together for a while before falling out. Reed even left the corporate world for a time.
 
A deep executive bench is always a plus, but in the end, one person at the top seems to be the final answer.
 
Also in the basket:
 
Rite Aid cuts view after latest loss; shares skid
 
H&M August sales disappoint as shoppers hunt for bargains
 
Buffett sings praises of a Chinese suit (WSJ)

(Photo/Reuters)

Check Out the competition in the mall.

As retailers tried to attract consumers for some post-Labor Day shopping, apparel retailers Aeropostale and Charlotte Russe beat Gap Inc’s Old Navy chain in the pricing war this month, according to Eric Beder,  associate director of research for Brean Murray Carret & Co.

While Aeropostale has “never looked better” with its combination of good merchandise and prices, Arden B owner Wet Seal remains the “low price leader,” Beder said.

Consumers have continued to seek lower prices for items like clothes and some surveys have predicted that although they might be willing to open up their wallets a little, they will still favor discounts as they draw up shopping lists ahead of the holiday season.

Another teen retailer Abercrombie, which usually has higher prices, may be realizing that consumers are likely staying cautious spenders and is offering more promotions, Beder said in  the research note.

And while Forever 21 and Urban Outfitters were using “strong fashions” to their advantage, Swedish apparel retailer H&M remains a top chain with low prices for fast fashion clothing and accessories, according to Beder.

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Holiday buying spurs Paris trade shows - (WWD, subscription required)

(Photo/Reuters)

Check out the latest news on U.S. retail sales.

The trend was pretty much the same as it has been lately — most chains posted declines in August sales at stores open at least a year, or same-store sales.

However, many declines were not all that bad and there were a handful of increases, which could be a sign that consumers are really back to shopping.

Target and Gap, for example, posted drops that were not as steep as anticipated.  Aeropostale and TJX both saw sales rise more than expected.  Still, others fell short.  Abercrombie & Fitch, Rite Aid, Children’s Place and others were among those whose sales declined more than Wall Street predicted.

Now all eyes turn to what demand will be like for the holiday season.  Sure, it’s still summer, but it’s getting chilly out there.  We’re sure retailers would love it if you went out and bought a new sweater or coat.  Or five.

(Reuters photo)

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A Decade Sophisticated but Louder (NY Times)

Check out the quarterly losses reported by J.C. Penney and former teen darling, Abercrombie & Fitch.

Penney reported a net loss of $1 million, or nil per share, compared with a year-earlier profit of $117 million, or 52 cents per share. Analysts on average expected a loss of 1 cent per share, according to Reuters Estimates.

The loss was bigger over at Abercrombie.

The clothing retailer recorded a net loss of $26.7 million, or 30 cents a share, compared with a net profit of $77.8 million, or 87 cents a share, a year earlier.

Penney has fashioned itself as a value destination in the downturn, and said on Friday that it sold more merchandise at regular promotional prices and less at clearance prices. Shoes and women’s clothing were the strongest sellers, while children’s apparel sales were weakest.

Abercrombie, which has been reluctant have its name associated with value, faced sliding sales, higher markdowns and increased costs in the quarter.

As the economic downturn has deepened, teenagers are overlooking its high-priced fashions and turn to rivals with cheaper prices like Aeropostale or Forever 21. Abercrombie has slowly begun to discount or lower the starting ticket prices on some items to address the consumer aversion to high prices in the downturn.

The company said it remained on track to open three international flagship stores in fiscal 2009, including two stores in Milan and one outlet in Tokyo.

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(Photos: Reuters)

Check out the tax-free shopping spree.

Many states that levy sales tax on clothing offer a short break on the tax in the summer, which, in turn, spurs back-to-school shopping.

Ten states, including Virginia, offered shoppers a chance to buy tax-free last weekend, with most states offering a tax break on clothing up to $100 per item, FBR Capital Markets noted in a new report.

Their analysts saw “some of the strongest” surges this year in customers visiting stores and buying.

FBR Capital Markets said Aeropostale and Gap’s Old Navy were among the few stores it saw actually advertising the three-day discount.  Others hoped to benefit from word-of-mouth.

The weekend came right after retailers, in general, posted a decline in July sales at stores open at least a year.  August’s same-store sales could get a boost since some tax-free weekends moved into August after landing in July last year.

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U.S. Q2 online retail sales keep sliding, comScore says

(Reuters photo)

Citigroup retail analysts held a call with the media to discuss their outlook for this year’s back-to-school season and, as we’ve been hearing, there are few bright spots on the horizon.

Deborah Weinswig, who covers retailers including Costco, Wal-Mart and Nordstrom, said Citi expects back-to-school same-store sales for those retailers to fall 3 percent to 4 percent.

That compares with a gain of 0.9 percent last year.

“This is the first year since at least 1995 that we are projecting a decline in back to school same store sales,” she said. “In addition, if back-to-school sales don’t materialize early we believe that retailers could become very promotional in an attempt to drive traffic and sales.”

She said Citi’s proprietary back-to-school survey found that 45 percent of consumers plan to spend less for this year’s new school season than they did a year ago. The survey found that most consumers plan to buy apparel (75% vs. 79% last year), while the second most common purchase is expected to be a personal computer (15% vs. 19% last year) –although, as you can see, the percent planning to buy in both categories is down year-over-year.

J.C. Penney is one of Weinswig’s top picks for back to school - helped mainly by the fact that they have very easy comparisons to a year ago when sales fell.

Kimberly Greenberger, another analyst, said she is cautiously optimistic for improving sales and profit trends for the back to school season for softline retailers, or chains like Aeropostale and Pacific Sunwear. Greenberger said she was bullish on the outlook for American Eagle Outfitters and Urban Outfitters.

She said Urban Outfitters is a best-in-class retailer, while American Eagle Outfitters is showing improved product execution and faces easier sales and margin comparisons.

(Photo: Reuters)

By Nivedita Bhattacharjee 
 
Before they decide what to wear back to school this fall, Aeropostale is giving young trendsters a new door to explore.
 
The company, whose stylized “A” graces the T-shirts of many American teenagers, opened its first “P.S. from Aeropostale” store in the Palisades Mall in West Nyack, New York. 
 
With a theme that says “Happy. Fun. Cool”, P.S from Aeropostale sells clothes aimed at boys and girls from 7 to 12.
 
“We are thrilled to be able to offer the elementary school student a brand they can call their own,” CEO Julian Geiger said in a statement. 
 
The retailer, which has taken market share from rivals as teens and their parents go bargain-hunting, had announced plans to enter the kids’ market in March.  About nine more of the stores are slated to open this fiscal year, mainly in the New York area.
 
“While it is very obvious from the logo and the looks that P.S. is part of Aeropostale, the chain has a vibe all its own,” Brean Murray analyst Eric Beder said in a note.  He added that while Aeropostale itself is almost all logo driven, the level of logo wear is lesser in the new chain.  Still, there are plenty of “P.S.” items to be found on the shop’s site.
 
“We believe this store will easily suit the needs of the younger girl/boy Aero ‘wanna-be,’” Beder said.
 
And with touches like places for moms to relax, and a system that allows them to talk to the kids while they are in the dressing room, Beder has already marked P.S. for Aeropostale the next big thing for the company.
 
Will the kids and their moms second that?
 
  
(Screen shot of P.S. web site www.ps4u.com)

Check out some strong sales.

Sure, sales are still down at most chains.  Still, anything that’s down less than expected is a good sign in this economy, right?

Sales at Wal-Mart’s U.S. stores open at least a year jumped 5 percent, topping analysts’ average expectation for a 2.9 percent rise.  And in a sign that improving sales are leading to better profitability, retailers including J.C. Penney, TJX and Kohl’s raised their profit expectations for their just-completed first quarter.

Also, it looks like kids whose parents didn’t have the money for family vacations over spring break spent some of their time in shopping malls.  Some of the biggest surprises came from Aeropostale and The Buckle, which cater to teens.  Both posted double-digit gains in same-store sales.

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Walgreen’s beauty merchant leaves chain (WWD, subscription required)

(Reuters photo)

Check Out the drop in sales.

It was no surprise that sales were weak in December, though some retailers stood out Thursday for their worse-than-expected performance.

Wal-Mart, the world’s largest retailer, said sales at U.S. stores open at least a year rose just 1.7 percent, while analysts were expecting a 2.8 percent increase.  Wal-Mart and other chains such as Macy’s cut guidance for the fourth quarter ending later this month.
 
Shares of Wal-Mart fell more than 9 percent on Thursday morning, dragging the Dow Jones industrial average into negative territory as well.

Research firm Retail Metrics said that while the month was not as bad as it could have been, it was still ugly.

Among the retailers that bucked the trend:
Target’s same-store sales fell 4.1 percent, but that drop was less than expected.
 
Discount chains TJX and Ross Stores said same-store sales were in line with last year, while analysts had expected both of their sales to fall. Kohl’s, meanwhile, said same-store sales fell only 1.4 percent, while analysts expected a 5.5 percent dip. 
 
Some teenagers apparently still have some money to spend — or they got others to buy them gifts last month.  Aeropostale’s same-store sales jumped 12 percent (analysts predicted a decline) and Hot Topic’s same-store sales rose a better-than-expected 4.3 percent.  Guess people are still heading to the stores for ”Twilight” perfume, shirts and other items.

Also in the basket:

Sears Holdings same-store sales fall, cash rises

Walgreen cuts about 1,000 jobs

European shoppers seek value as economy darkens

U.S. Fashion’s One-Woman Bailout? (New York Times)

(Reuters photo)