This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Denim Wars: Who Has the Best Deal for Back to School?

Stocks in this article: ANF ARO AEO GPS PSUN WTSLA URBN

NEW YORK ( TheStreet) -- Denim despair or delight? It depends who you ask.

As cotton prices soared earlier in the year, retailers were left scrambling on how they would handle the pricier fiber this fall. For denim in particular, in which cotton makes up about 55% of the total cost, this is an even bigger issue for the all-important back-to-school season.

Denim is one of the most important categories for back to school, constituting as much as 25% of sales for some retailers.

According to Brean Murray analyst Eric Beder, five retailers in his coverage universe raised denim prices to offset higher cotton costs, while four decreased ticket prices this back-to-school season.

>Back-to-School 2011: 4 Items That Will Cost More

It's clear that average unit prices on denim have ticked up, but with price at the forefront of shoppers' minds for back-to-school season most retailers are offering compelling promotions to distract from the increase in original prices.

"The combination of rising costs placing pressure on margins, and retailers slashing average unit retail to drive traffic is a formula for margin deterioration for those who do not have the higher margin international presence," Beder wrote in a note.

Here's a look at how retailers are handling denim prices and where to find the deepest promotions.

1 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,173.87 -242.98 -1.40%
S&P 500 2,000.52 -20.73 -1.03%
NASDAQ 4,646.04 -37.3670 -0.80%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs