Core Viewpoint - American Eagle Outfitters (AEO) is experiencing notable stock performance and is preparing for an upcoming earnings report, which is expected to show a significant decline in earnings per share compared to the previous year [1][2]. Company Performance - AEO's stock closed at $11.98, reflecting a 0.67% increase from the previous trading day, outperforming the S&P 500's gain of 0.41% [1]. - Over the last month, AEO's shares have increased by 15.76%, exceeding the Retail-Wholesale sector's gain of 9.47% and the S&P 500's gain of 9% [1]. Earnings Expectations - The upcoming earnings report on May 29, 2025, is expected to show an EPS of $0.11, which represents a 67.65% decline compared to the same quarter last year [2]. - The Zacks Consensus Estimate for revenue is projected at $1.08 billion, down 5.3% from the previous year [2]. Full-Year Estimates - For the full year, the Zacks Consensus Estimates predict earnings of $1.49 per share and revenue of $5.22 billion, indicating year-over-year changes of -14.37% and -1.97%, respectively [3]. Analyst Projections - Recent shifts in analyst projections for AEO are important for investors, as positive revisions indicate confidence in the company's performance and profit potential [4]. Zacks Rank and Performance - AEO currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate having decreased by 0.58% over the past month [6]. - The Zacks Rank system has a strong track record, with 1 stocks averaging an annual return of +25% since 1988 [6]. Valuation Metrics - AEO has a Forward P/E ratio of 8, which is below the industry average of 16.04 [7]. - The company also has a PEG ratio of 0.86, compared to the industry average PEG ratio of 1.58 [8]. Industry Context - The Retail - Apparel and Shoes industry, to which AEO belongs, ranks in the bottom 45% of all industries according to the Zacks Industry Rank [9].

Core Viewpoint - American Eagle Outfitters, Inc. (AEO) has withdrawn its fiscal 2025 guidance due to macro volatility and disappointing preliminary first-quarter results, leading to a nearly 15% drop in after-hours trading [1] Financial Performance - For the first quarter, revenues are projected to be $1.1 billion, reflecting a nearly 5% decline year-over-year [2] - Comparable sales are expected to decrease by nearly 3%, with American Eagle down 2% and Aerie down 4% [2] - Management anticipates a GAAP operating loss of approximately $85 million and an adjusted operating loss of $68 million for the first quarter, which includes an asset impairment and restructuring charge of about $17 million [3] Inventory and Merchandising Challenges - The company faced challenges with merchandising actions, resulting in increased promotions and excess inventory, leading to a $75 million inventory charge related to spring and summer merchandise write-downs [4][2] - Despite these challenges, AEO has entered the fiscal second quarter with inventory better aligned to sales trends [5] Strategic Initiatives - AEO is focused on its "Powering Profitable Growth Plan," which aims to enhance operating income through disciplined cost management, digital investments, and supply-chain improvements [8] - The company continues to grow the Aerie brand through market expansion and innovation, supporting long-term revenue and margin goals [8] Market Context - AEO's shares have declined by 25.9% over the past six months, compared to a 0.4% decline in the industry, attributed to ongoing performance issues and challenges in the retail environment [6] - The company is facing headwinds from the consumer and macroeconomic landscape, with both earnings and revenues falling compared to the previous year [7]

American Eagle Outfitters Inc. AEO issued a profit warning and withdrew its full-year 2025 guidance on Tuesday.The retailer said it expects first-quarter revenue of $1.1 billion, a 5% decline from the prior year. Comparable sales are projected to be down around 3%, with the American Eagle brand down 2% and the Aerie brand down 4%. The company said it anticipates an operating loss of approximately $85 million, or $68 million on an adjusted basis.American Eagle withdrew its full-year guidance due to broader m ...

Core Viewpoint - American Eagle Outfitters Inc has withdrawn its 2025 guidance due to macroeconomic uncertainty, leading to a significant decline in stock price and expectations for revenue and operating losses [1] Financial Performance - The company anticipates a first-quarter revenue decline of 5% to $1.1 billion, with comparable sales expected to fall by 3%, primarily driven by a 4% drop in its Aerie brand [1] - An operating loss of $85 million is projected, attributed to heavy discounting and a $75 million inventory write-down related to spring and summer merchandise [1] Stock Performance - American Eagle's stock has decreased by 51.2% year-over-year and 27.8% year-to-date, with recent trading below the $12 level, which has acted as resistance [2] - Earlier in the week, the stock briefly rallied and broke above its 80-day moving average but has since fallen back below this trendline [2] Options Market Activity - Options traders have reacted to the selloff, with 19,000 puts traded, which is 44 times the typical volume for this session, indicating a bearish sentiment [3] - The June 10 put is the most popular contract, as traders prepare for further downside [3] - The stock's 50-day put/call volume ratio of 0.99 is higher than all other readings from the past year, reflecting increased put buying [4] - The put/call open interest ratio (SOIR) of 1.94 ranks in the 77th percentile of annual readings, indicating a strong put bias among short-term options traders [5]

Core Viewpoint - American Eagle is facing significant challenges, including a $75 million write-off of spring and summer merchandise, slow sales, and has withdrawn its full-year guidance due to an uncertain economic environment [1][6]. Financial Performance - The company expects first-quarter revenue to be approximately $1.1 billion, reflecting a decline of about 5% year-over-year [2]. - Comparable sales are anticipated to drop by 3%, with a notable 4% decline expected in the intimates brand Aerie [2]. - An operating loss of around $85 million is projected, with an adjusted operating loss of about $68 million for the quarter, attributed to higher-than-planned discounting and the $75 million inventory charge [4]. Management Commentary - CEO Jay Schottenstein expressed disappointment with the company's execution in the first quarter, citing ineffective merchandising strategies that led to increased promotions and excess inventory [5]. - The company has entered the second quarter with inventory better aligned to sales trends and is actively evaluating forward plans to strengthen product performance [6]. Market Conditions - The company has withdrawn its fiscal 2025 guidance due to macroeconomic uncertainty and is reviewing its forward plans in light of first-quarter results [6]. - There is uncertainty regarding the impact of recent tariff policy changes on American Eagle's operations [6].

Company Performance - American Eagle Outfitters (AEO) ended the recent trading session at $11.17, showing a +1.27% change from the previous day's closing price, outperforming the S&P 500 which gained 0.44% [1] - The company's shares have increased by 14.3% over the last month, surpassing the Retail-Wholesale sector's gain of 9.15% and the S&P 500's gain of 10.62% [1] Earnings Projections - The upcoming EPS for American Eagle Outfitters is projected at $0.11, indicating a 67.65% decline compared to the same quarter last year [2] - The consensus estimate for revenue is $1.08 billion, reflecting a 5.35% decrease from the equivalent quarter last year [2] - Full-year Zacks Consensus Estimates predict earnings of $1.49 per share and revenue of $5.22 billion, representing year-over-year changes of -14.37% and -1.98%, respectively [3] Analyst Estimates and Rankings - Recent changes in analyst estimates for American Eagle Outfitters are crucial as they indicate shifting near-term business trends, with positive revisions suggesting optimism about the company's outlook [4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks American Eagle Outfitters as 4 (Sell), with a 0.67% decline in the Zacks Consensus EPS estimate over the past month [6] Valuation Metrics - American Eagle Outfitters is trading at a Forward P/E ratio of 7.42, which is a discount compared to the industry average Forward P/E of 13.81 [7] - The company has a PEG ratio of 0.79, while the average PEG ratio for the Retail - Apparel and Shoes industry is 1.4 [7] Industry Context - The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector and currently holds a Zacks Industry Rank of 149, placing it in the bottom 40% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Company Performance - American Eagle Outfitters (AEO) closed at $10.69, reflecting a +1.52% change from the previous day, outperforming the S&P 500's gain of 0.63% [1] - Over the past month, AEO shares have declined by 16.76%, underperforming the Retail-Wholesale sector's loss of 0.09% and the S&P 500's loss of 0.7% [1] Earnings Expectations - Analysts expect AEO to report earnings of $0.11 per share, representing a year-over-year decline of 67.65% [2] - The consensus estimate for revenue is $1.08 billion, indicating a 5.35% decrease from the same quarter last year [2] Full Year Projections - For the full year, Zacks Consensus Estimates project earnings of $1.50 per share and revenue of $5.22 billion, reflecting changes of -13.79% and -1.98% respectively from the previous year [3] Analyst Forecast Revisions - Recent revisions to analyst forecasts for AEO are crucial as they indicate changing near-term business trends, with positive revisions suggesting analyst optimism regarding the company's profitability [4] Zacks Rank and Valuation - AEO currently holds a Zacks Rank of 4 (Sell), with a 0.08% decrease in the consensus EPS estimate over the last 30 days [6] - The Forward P/E ratio for AEO is 7.04, which is a discount compared to the industry's average Forward P/E of 13.41 [7] - AEO has a PEG ratio of 0.75, while the Retail - Apparel and Shoes industry has an average PEG ratio of 1.39 [7] Industry Context - The Retail - Apparel and Shoes industry is ranked 146 in the Zacks Industry Rank, placing it within the bottom 41% of over 250 industries [8]

Core Viewpoint - The ongoing tariff discussions are causing uncertainty among American investors, particularly regarding the potential impact on companies with significant exposure to China and other Asian countries [1][2]. Group 1: Company Exposure to Tariffs - Companies are facing a wide range of potential tariff outcomes, leading many retailers to frontload merchandise in anticipation of tariffs, which may not be sustainable in the long term [2]. - American Eagle Outfitters (AEO) has a significant reliance on Asian manufacturing, with 101 factories in China and 67 in Vietnam, making it vulnerable to tariff impacts [4]. - Levi Strauss & Co. also faces challenges due to its exposure to Asian countries, including China, Cambodia, and Vietnam, which puts it at the forefront of tariff discussions [6][10]. Group 2: Stock Performance and Valuation - American Eagle Outfitters is trading at a low P/E ratio of 9.14, with a forward P/E around 6x, and has a consensus price target of $15.50, indicating a potential 45% gain from its current price [3][4]. - Levi Strauss has a P/E ratio of 30.38 and a dividend yield of 3.29%, with a consensus price target of $19.18, suggesting a potential 21% upside [7][8]. - VF Corporation, which owns several well-known brands, has seen its stock performance decline due to multiple challenges, including a decrease in year-over-year revenue and significant exposure to tariffs, with a consensus price target of $21.70 indicating over 80% potential gain [10][11]. Group 3: Analyst Sentiment - Analysts have lowered price targets for VF Corporation, indicating a cautious outlook, while American Eagle and Levi Strauss are viewed as having attractive valuations despite their tariff exposure [11][12]. - The consensus rating for VF Corporation is currently a Hold, with top analysts suggesting alternative stocks may be better investment opportunities [12].

American Eagle Outfitters (AEO) closed the latest trading day at $11.04, indicating a -1.43% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.06% for the day. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.1%.Shares of the teen clothing retailer have depreciated by 1.93% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 2.65% and the S&P 500's loss of 4.29%.The investment community will be ...

Group 1 - Synchrony has announced a multi-year extension of its agreement to manage the credit programs for American Eagle Outfitters, enhancing the consumer financing experience for customers [1][3] - The Real Rewards credit card allows customers to earn rewards when shopping at American Eagle and Aerie, both online and in-store, with the Visa version usable anywhere Visa is accepted [3] - The Real Rewards program has been recognized as one of America's Best Loyalty Programs by Newsweek for five consecutive years, and the Real Rewards Credit Card was named Money's Best Retail Credit Card: In-Store Rewards for 2025 [4] Group 2 - Synchrony is a leading consumer financing company that has been serving the needs of people and businesses for nearly 100 years, providing access to credit and banking products [5] - American Eagle Outfitters, Inc. is a global specialty retailer with a portfolio of brands that promote inclusivity and authenticity, offering high-quality products [6] - AEO operates stores in the United States, Canada, and Mexico, and has a strong e-commerce presence across its brands [7]