Aeropostale Bucks Downtrend

Many apparel retailers are facing a slump as the economy slows down, but Aeropostale ARO continues to stay strong.

The New York-based teen clothing chain operates more than 800 Aeropostale stores in the U.S. and Canada, as well as 14 Jimmy'Z stores in 11 states.

Aeropostale stores sell casual apparel aimed at the 14- to 17-year-old set; Jimmy'Z offers surf wear.

The company recently reported a 12% rise in June same-store sales, well above Street views of 6.9%, and boosted its second-quarter outlook.

By contrast, rivals Abercrombie & Fitch ANF and American Eagle Outfitters AEO posted bigger-than-expected declines in same-store sales for June.

So what has helped drive Aeropostale's sales?

The company, which designs and sells its own line of clothing, added more color and variety to its usual lineup of basic jeans and tops. For instance, it's selling dresses and more elaborate graphic T-shirts.

Its lower price point 15mpared with most of its rivals may also be appealing to more consumers who are tightening their purse strings.

Aeropostale stepped up its profit growth the past two quarters from 17% to 34% to 44%. It beat earnings forecasts the past four quarters to end a string of misses.