Why Teen Retailers Are in Trouble

The video discusses the performance of specialty teen retailers, highlighting a 9% plunge in stock prices despite narrower-than-expected losses. It contrasts the struggles of brands like Aeropostale and Wet Seal with the success of Urban Outfitters. The analysis reveals a significant divergence in stock performance, with specialty retailers losing 40% over five years while the S&P 500 retailing sub-index gained 160%. The decline of American shopping malls and the financial struggles of these retailers, including store closures, are also examined.

What was the market's reaction to the narrower-than-expected losses of some specialty teen retailers?

• The market was indifferent and showed no reaction.

• The market was confused and showed mixed reactions.

• The market was skeptical and did not respond positively.

• The market was optimistic and increased investments.

Which retailer showed a striking disparity in performance compared to others like Abercrombie and Fitch?

• Wet Seal

• Air Apostle

• Urban Outfitters

• American Eagle

What has been the trend for specialty teen retailers over the past five years?

• They have gained 160% in value.

• They have gained 40% in value.

• They have remained stable with no significant change.

• They have lost nearly 40% in value.

How many stores did Wet Seal announce it would close?

• 400 stores

• 338 stores

• 200 stores

• 150 stores

What is a significant factor contributing to the struggles of teen retailers like Air Apostle?

• Changes in fashion trends

• Increased competition from international brands

• The decline of American shopping malls

• The rise of online shopping