Aeropostale (ARO)

Aeropostale boasts the lowest prices of the main players in the teen apparel market, which give the firm an advantage in the current economic slowdown as teen's already small disposable income shrinks as their parents cut back on spending. In addition, the company has no debt and $100 million in free cash flow, putting ARO in a very strong positioon to do well in 2009 compared to other retailers.

Aeropostale will launch a new concept brand in 2009 designed for children. This new source of revenue could significantly help broaden Aeropostale's target market. The move follows the footsteps of Aeropostale's competitor, Abercrombie & Fitch, which operates a well-established children's brand, "abercrombie".

French Canadians speak French. The name "Aeropostale" is French for "airmail." While it remains to be seen whether these French speakers will feel silly wearing clothing proliferated with the word "airmail," it may be likely that they will prefer it over wearing the English name American Eagle. One reason this may be the case is that the French dislike the English language. Another reason may be that the French dislike the United States of America, and see the American Eagle brand to be a US symbol rather than a continental "American" symbol. Furthermore, many people from the United States of America actually haven't been buying Aeropostale because they believed it was a French Canadian product, and many US citizens dislike the French language. It's about time Aeropostale got its revenge.