Teen Clothing Chains Nix Monthly Reports
Abercrombie & Fitch, Aeropostale and American Eagle
Outfitters will no longer announce monthly results. Publicly-traded companies
in the past have argued the monthly number puts too much emphasis on short-term
"The shift enables American Eagle to align its reporting schedule with
the company’s long-term strategic focus," Jani Strand, a spokesperson
for American Eagle, told Bloomberg News in an e-mail.
if not most, prefer chains stick to monthly reports.
Michael Baron, an analyst
for Baron Capital, told Bloomberg, "The
more information the better. More information helps us determine the true value
of the company."
Another analyst, Brian Sozzi of Wall Street Strategies,
called the practice of monthly reporting "archaic" and that having
three chains stop at once "makes it easier for others to follow."
Discussion Question: Does ending monthly reports make for better longer-term results for retailers or will it lead to masking problems that need addressing?