Chart Analysis on Gap and American Eagle: What Next for Apparel Stores?

   Chart Analysis on Gap and American Eagle: What Next for Apparel Stores?

  PR Newswire

  LONDON, January 17, 2013

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 08 ^th ,
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. 

Footer:

1.The Gap Inc. Technical Analysis [
    http://www.StockCall.com/TheGapInc011713.pdf ]

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