American Eagle is Performing Better than Abercrombie Owing to Faster Changes

American Eagle is Performing Better than Abercrombie Owing to Faster ChangesThe apparel companies, American Eagle Outfitters Inc. and Abercrombie & Fitch Co. are desperately making an effort win back the teen customers who have shifted to more trendy clothing brands like Forever 21.

However, out of the two only one of them seem to be making some progress in achieving some success.

Shares of American Eagle increased 7.7% to its highest level in one year following a better than expected fourth-quarter earnings report which revealed that the comparable sales reached a flat level after declining consecutively for seven quarters.

The first-quarter outlook of the company also surpassed the analyst's expectations. The clothing company also said that its comparable sales figures in January have gone to positive levels. This trend is likely to persist through spring as the company lowered its discounts.

On the other hand, the stocks of Abercrombie stock dropped 16% to the lowest level seen during the past five years.

According to analysts, among the two, American Eagle definitely has been able to do a faster and a better progress by offering larger number of fashions other than its conventional preppy-style logo T-shirts and polo shirts.

Abercrombie is also trying to examine the causes of its slow sales but does not expect any products that make a "real difference" to be available in stores till back to school. It is removing shutters from stores to make them well lit and says that it has helped increase the sales.