Retailers Catch Teenage Blues

Niche Apparel Stores, Long Thought Resistant to Downturn, Suffered With Others in July

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Teens may dread going back to school, but the retail chains catering to them eagerly await this season for a reliable boost from kids who need new clothes. In this slow economy, however, teen retailers are showing signs of stress and beginning to worry that the late-summer boom might not arrive this year.

Big brands like Abercrombie & Fitch Co. and American Eagle Outfitters Inc. on Thursday both reported sales declines of 7%, for same-store sales, or those at stores open more than a year. Sales at niche clothiers like punk rock-themed Hot Topic ...