If current crude oil prices near US$50 a barrel persist, the effect on the economy may be even larger. The economy will grow at a 3.4 percent annual rate this quarter instead of the 4.5 percent in the previous forecast, Wieting said in a report. Other chains such as American Eagle Outfitters Inc that are less dependent on shoppers who stick to budgets are doing better.
Denim sales were so strong at the teen clothing retailer that it cut a back-to-school promotion on jeans to one week from three, executives said earlier this month.
Laura Kucera, 45, said she planned to visit American Eagle during a recent trip to the Woodfield Mall in the Chicago suburb of Schaumburg, Illinois. Kucera said she'll spend about US$500 on both of her daughters -- one a college student and the other a seventh grader.
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