Urban Outfitters' Online Edge

Teen apparel retailers American Eagle Outfitters (NYSE: AEO  ) and Urban Outfitters (NASDAQ: URBN  ) are both making the news today after being beaten up on the market, with both stocks near 52-week lows. While Urban Outfitters did see some pretty good Q4 results from its Anthropologie business at least, American Eagle's earnings report was awful, with profits down a staggering 89% from the same quarter last year.

In this segment from Tuesday's Investor Beat, host Chris Hill and Motley Fool analysts Morgan Housel and Mike Olsen look at the extremely difficult business of teen apparel. Not only is the customer base notoriously fickle, but Mike also notes that they are a very underemployed demographic at the moment, even while the broader economy recovers. Those two factors together make this an exceptionally difficult consumer base to appeal to, though Mike also looks at one advantage Urban Outfitters may have over the competition.

Two retailers who know how to win when others are losing.
To learn about two retailers with especially good prospects, take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.


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