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A Foolish Take: Apparel stocks face tough headwinds in 2017

March 31, 2017

Via: USA TODAY

You’ve probably noticed that many apparel retailers are dumping their merchandise at steep discounts, shuttering their stores, or simply disappearing. Several major retailers – including Aeropostale, The Limited, and American Apparel – all filed for bankruptcy over the past year.

To understand what happened, let’s look at the comparable-store sales (or “comps”) growth of several major apparel retailers in 2016. Comps growth measures the year-over-year sales growth of stores open for at least year, which gives us an idea of how well their maturing stores are holding up.

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