Abercrombie & Fitch Co. (ANF), The Buckle, Inc. (BKE): Is It Time to Be Afraid of Teen Retailers?

Tilly’s is trading below its debut price of $16.81. The company certainly has room to grow with only 175 stores in the US, but where its teen customers (who are having trouble finding part-time jobs) will come from I don’t know.

ANF Total Return Price data by YCharts

The Foolish takeaway

Although I have pounded the table on The Buckle, Inc. (NYSE:BKE) since last November, adding the 10% or so total yield (including the special dividend) to its 5% price appreciation since then one would have done just about the same as an S&P 500 index fund. It is still one of the most reliably performing specialty retailers out there but its relatively high price to sales and slow-but-consistent growth aren’t all that thrilling.

If you want thrilling, you can go for a ride on the Abercrombie & Fitch Co. (NYSE:ANF) Express but it could be a gut-wrenching retail derail. Some might choose to take a chance on this now-humbled chain but I’d be very afraid for you. As for Tilly’s, contracting margins and an unfortunate fashion niche should scare you silly.

The article Is It Time to Be Afraid of Teen Retailers? originally appeared on Fool.com and is written by AnnaLisa Kraft.

AnnaLisa Kraft has no position in any stocks mentioned. The Motley Fool recommends The Buckle. The Motley Fool owns shares of The Buckle. 

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.