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Must Read: Abercrombie & Fitch in Alleged Acquisition Talks With American Eagle and Express, Big Retail Brands Face Bad Q1 Earnings

Plus, Sephora is thriving amid a retail crisis.
Male models at the Abercrombie & Fitch flagship in Munich. Photo: Hannes Magerstaedt/Getty Images

Male models at the Abercrombie & Fitch flagship in Munich. Photo: Hannes Magerstaedt/Getty Images

These are the stories making headlines in fashion on Thursday.

Abercrombie & Fitch is allegedly in acquisition talks with American Eagle and Express
Upon Wednesday's reported news that Abercrombie & Fitch is currently fielding takeover interest, the struggling teen retailer is allegedly looking to American Eagle Outfitters Inc. and Express Inc. While each of the former companies have refused to comment on market rumors, analysts see American Eagle's possible buy as a strategic move to consolidate competitive teen retailers. However, each business in question is currently struggling, which makes an acquisition that much more of a risk. {WWD}

Major retailers are expected to report some pretty poor Q1 earnings 
Things haven't been looking up for department stores, and with the anticipation of first-quarter earnings reports from Nordstrom, Macy's, Kohl's and JC Penney, analysts' expectations are fairly low. Though Nordstrom will likely have a boost in sales from 2016's fourth quarter, all four companies are predicted to report low earnings for this year thus far. {WWD}

Meanwhile, Sephora is thriving amid a retail crisis
Recently named by Euromonitor International as the number-one specialty beauty store in the world, Sephora is doing quite well while department stores are scrambling to revamp their cosmetic sections to attract young consumers. Retailers like Bloomingdale's, Macy's and Kohl's are taking note of Sephora's seamless integration of digital workstations and its mobile app. {New York Times}

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Copenhagen Fashion Summit pushes for a circular economic model within the global fashion industry
On Thursday, the Copenhagen Fashion Summit will propose a circular economic model in hopes that the global fashion industry will adopt the concept towards a more sustainable production and manufacturing system. The model is already supported by big businesses like Kering, H&M, Adidas and Target, but as the global population continues to rise (along with apparel consumption), a majority of the industry must enforce a practice of reusing and recycling materials to create new product and lessen waste. {Business of Fashion}

Sophia Amoruso on being a #Girlboss, feminism and her new Netflix series
With the new release of Netflix series "Girlboss," starring Britt Robertson as a young Sophia Amoruso, the Nasty Gal founder must (uncomfortably) relive a fictional version of her 23-year-old self. "There are things that are a lot like me at that age and things that are exaggerated. It was never the task to re-create me," says Amoruso in an interview with The Guardian writer Phoebe Luckhurst. The profile also touches upon how Amoruso clarifies the coined term #Girlboss in terms of feminism and looking back at the rise and fall of her time at Nasty Gal. {The Guardian}

Peer-to-peer payment services are growing in popularity among millennials
A new study on consumer mobility trends by Bank of America shows that millennials are leading the charge when it comes to peer-to-peer payment services via mobile devices. The newly launched Zelle — a banking app à la Venmo and comprised of nineteen bank businesses, including Bank of America, Wells Fargo, JPMorgan Chase and Citigroup — boasts 62 percent of users within the millennial age group. With the rise of mobile payments by younger generations, checks, physical credit cards and cash will likely become obsolete among Gen Z'ers. {WWD}

Nordstrom expects flat comparable sales this year
Despite seeing an increase in profit, customer count and online sales this quarter, Nordstrom is not seeing sales growth in stores. For the three months ended April 29, total company comparable sales (in stores opened at least a year) decreased by 0.8 percent. Excluding the healthier Nordstrom Rack brand, net sales decreased 1.7 percent and comparable sales decreased 2.8 percent. The department store chain expects comparable sales to be flat for 2017. {Nordstrom}

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