Urban Outfitters and American Eagle: Which Teen-Focused Retailer Is the Better Buy?
Urban Outfitters (NASDAQ: URBN) and American Eagle Outfitters (NYSE: AEO) are lifestyle retailers focusing on young adults and teenagers. Both companies are in the challenging apparel retail segment. With declining mall traffic and increased competition from direct-to-consumer brands and e-commerce, these companies have had to work hard to stand out. Their strategies include exclusive collaborations with designer brands like Laura Ashley (Urban Outfitters) and musicians like Lil' Wayne (American Eagle) as well as branding messages that resonate strongly with their core audience.
While both specialty retailers cited increased promotional activity during the recent holiday season, one of the companies reaffirmed its fourth-quarter guidance while the other didn't. American Eagle Outfitters and Urban Outfitters each saw strong growth in their digital businesses over the last two quarters.
American Eagle Outfitters shares lost 24% in 2019, while Urban Outfitters shares lost 16% in the same period. Given the pullbacks in share prices, which one offers better value now?
Source Fool.com
