5 retail winners

Even before the back-to-school shopping season commenced, the low cost retailer drew the hoodies and jeans set in droves: Aéropostale reported a 43% increase in profits in 2Q, and an overall sales increase of 21%, to $377.1 million. Even more shockingly, the New York based chain saw same-store sale growth of 13% this July, compared with a decrease of 12% in July of last year. How is Aéropostale thriving when most mall mainstays are faltering? CEO Julian Geiger pointed to careful inventory management and balanced merchandise, but it's also likely that recession-conscious shoppers view the brand as an alternative to higher-cost preppy retailers such as Abercrombie and Fitch and American Eagle Outfitters, both of whom have suffered losses.

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