For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.It also includes access to the Zacks Style Scores.What are the Zacks Style Scores?Developed alongside ...

Retail sales in the United States stalled in June from May 2024, following an upwardly revised 0.3% rise in the previous period. Economists had expected a 0.3% decline in spending, according to Bloomberg data. Meanwhile, retail sales in May were revised higher to an uptick of 0.3%, from a prior reading of 0.1%, according to Census Bureau data.Sales excluding food services, auto dealers, building materials stores and gasoline stations, which are used to calculate GDP, were up 0.9%, the largest increase since ...

A month has gone by since the last earnings report for American Eagle Outfitters (AEO) . Shares have lost about 9.6% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is American Eagle due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. American Eagle’s Q1 Earnings Beat Es ...

Core Viewpoint - Nvidia is characterized as an expensive AI investment, with alternatives in emerging markets trading at significantly lower valuations [1] Group 1: Nvidia and Market Comparisons - Nvidia's share price has decreased by over 12% since June 20, trading at 37x sales and 66x cash flow, while Asian AI companies trade at 18.5x sales and 33x cash flow [1] - The current trading price of Nvidia stock is $124 [1] Group 2: Knife River (KNF) - Knife River trades around $72 with a market capitalization of $4.09 billion, accounting for 58% of Nvidia's share price [2] - Knife River was spun off from MDU Resources in June 2023, focusing on construction materials and contracting services [2] - Five out of six analysts covering Knife River rate it a buy, with a target price of $88, indicating a potential 22% upside [2] Group 3: American Eagle Outfitters (AEO) - American Eagle trades around $21 with a market capitalization of $4.11 billion, accounting for 17% of Nvidia's share price [4] - The company reported Q1 2024 revenues of $1.1 billion, a 6% year-over-year increase, with digital revenue up 12% [4][5] - American Eagle's operating income was $77.8 million, a 76% increase from the previous year, and earnings per share were $0.34, up 278% [5] - The stock trades at 0.77x sales and 7.57x cash flow, significantly cheaper than Abercrombie & Fitch [5] Group 4: Hormel Foods (HRL) - Hormel Foods trades at around $31 with a market capitalization of $16.71 billion, accounting for 25% of Nvidia's share price [6] - Hormel's Q2 2024 net sales were $5.88 billion, slightly down from $5.95 billion a year ago, with net income at $189.3 million, a 13% decrease [6][7] - The company's operating cash flow for the first half of 2024 was $640 million, a 55% increase year-over-year, resulting in a P/CF of 12.8x [7] - Hormel has a dividend yield of 3.7% and strong brand recognition with products like Planters and SPAM [7]

American Eagle Outfitters (AEO) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Over the past month, shares of this teen clothing retailer have returned -13.4%, compared to the Zacks S&P 500 composite's +3.2% change. During this period, the Zacks Retail - Apparel and Shoes industry, which American Eagle falls in, has remained unchanged. The key question now is: What could be the stock' ...

Core Insights - American Eagle Outfitters Inc. (AEO) has maintained its market niche and brand strength, driven by strong demand for its Aerie and American Eagle brands [1] - The company's profit improvement initiatives and cost reductions have positively impacted margins, with gross margin expanding by 240 basis points year over year and operating margin increasing to 6.8% [1][2] Financial Performance - AEO reported first-quarter fiscal 2024 earnings of 34 cents per share, doubling from 17 cents in the same quarter last year [2] - The company's shares have increased by 73.7% over the past year, outperforming the industry growth of 41.5% and the Retail-Wholesale sector's growth of 21.2% [2] Growth Strategies - AEO's growth vision includes the Real Power Real Growth and Powering Profitable Growth plans, focusing on real estate optimization, inventory management, and customer-centric initiatives [4] - The Powering Profitable Growth plan targets annual operating income growth in the mid to high-teens, aiming for over $570 million by the end of fiscal 2026, with a projected operating margin of 10% [4] Brand Expansion - The company is pursuing growth opportunities for the Aerie brand through market expansion and innovation [5] - AEO expects fiscal 2024 revenues to increase by 2-4% year over year, with operating income estimated between $445 million and $465 million [5] Future Outlook - AEO anticipates high-single-digit year-over-year revenue growth in the second quarter of fiscal 2024, including a $55 million positive impact from the retail calendar shift [5] - Projected operating income for the second quarter is between $95 million and $100 million [5] Cost Management - The company has experienced a 7% year-over-year increase in SG&A expenses for the first quarter of fiscal 2024, attributed to higher corporate compensation and incentives [6] - Management expects SG&A expense leverage in the second quarter due to profit improvement initiatives [6]

American Eagle Outfitters (AEO) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Shares of this teen clothing retailer have returned -11.6% over the past month versus the Zacks S&P 500 composite's +4.2% change. The Zacks Retail - Apparel and Shoes industry, to which American Eagle belongs, has gained 7.8% over this period. Now the key question is: Where could the st ...

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.Zacks Premium includes access to the Zacks Style Scores as well.What are the Zacks Style Scores?The ...

The sluggishness in retail sales signals it’s time to assess retail stocks to sell.U.S. retail figures came in flat last month compared to March, significantly behind analyst estimates. Moreover, retail sales, excluding automobiles and fuel, dipped 0.1%, while a notable 1.2% decline in online sales pointed to a pullback in consumer activity. This worrying trend points to deeper economic headwinds, impacting household budgets by eating into disposable income. Hence, these worrying indicators and ongoing fina ...

[PART I - FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Forward Looking Statements](index=4&type=section&id=Forward%20Looking%20Statements) This section outlines forward-looking statements based on management's beliefs and cautions that results may differ due to risks - Fiscal 2024 plans include opening approximately **5-15 American Eagle stores** and **25-40 Aerie/OFFLINE stores**, remodeling **80-90 stores**, and potentially closing **10-20 American Eagle stores**[9](index=9&type=chunk) - Key risks that could impact future results include macroeconomic conditions, fashion trends, competition, and supply chain issues[9](index=9&type=chunk)[10](index=10&type=chunk) [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) Presents consolidated financial statements showing a 6% revenue increase and a significant rise in net income to $67.8 million [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (in thousands) | Account | May 4, 2024 | February 3, 2024 | April 29, 2023 | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Cash and cash equivalents | $300,518 | $354,094 | $117,841 | | Merchandise inventory | $681,062 | $640,662 | $624,851 | | Total current assets | $1,311,317 | $1,433,350 | $1,129,501 | | Total assets | $3,557,217 | $3,557,909 | $3,373,894 | | **Liabilities & Equity** | | | | | Total current liabilities | $773,329 | $891,172 | $716,437 | | Total liabilities | $1,804,861 | $1,821,150 | $1,754,878 | | Total stockholders' equity | $1,752,356 | $1,736,759 | $1,619,016 | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Consolidated Statements of Operations (in thousands, except per share data) | Metric | 13 Weeks Ended May 4, 2024 | 13 Weeks Ended April 29, 2023 | | :--- | :--- | :--- | | Total net revenue | $1,143,867 | $1,080,926 | | Gross profit | $464,239 | $413,179 | | Impairment, restructuring and other charges | $0 | $21,275 | | Operating income | $77,836 | $22,831 | | Net income | $67,752 | $18,453 | | Diluted net income per common share | $0.34 | $0.09 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Statements of Cash Flows Highlights (in thousands) | Activity | 13 Weeks Ended May 4, 2024 | 13 Weeks Ended April 29, 2023 | | :--- | :--- | :--- | | Net cash (used for) operating activities | $(38,111) | $(8,216) | | Net cash provided by (used for) investing activities | $59,221 | $(46,020) | | Net cash (used for) provided by financing activities | $(74,214) | $1,908 | | Net change in cash and cash equivalents | $(53,576) | $(52,368) | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) - The company operates two reportable segments: **American Eagle** and **Aerie**, with other operations grouped under 'Other'[27](index=27&type=chunk)[78](index=78&type=chunk)[114](index=114&type=chunk) - No impairment charges were recorded in the current quarter, unlike the **$21.3 million** charge in the prior-year quarter[119](index=119&type=chunk)[120](index=120&type=chunk)[149](index=149&type=chunk) - The effective income tax rate decreased to **18.0%** from 27.5% in the prior year, due to tax benefits on share-based payments[111](index=111&type=chunk)[157](index=157&type=chunk) - As of May 4, 2024, the company had **no outstanding long-term debt**[93](index=93&type=chunk)[98](index=98&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q1 performance to its growth plan, resulting in a 6% revenue increase and 241% operating income surge [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Brand Revenue Performance (13 Weeks Ended May 4, 2024 vs. Prior Year) | Brand | Revenue (in thousands) | % Change YoY | | :--- | :--- | :--- | | American Eagle | $724,744 | +8% | | Aerie | $372,652 | +4% | - Total net revenue increased **6% to $1.144 billion**, with comparable sales up 7%[140](index=140&type=chunk) - Gross profit rose **12% to $464.2 million**, and the gross margin rate expanded by **240 basis points to 40.6%**[137](index=137&type=chunk)[145](index=145&type=chunk) - Selling, general and administrative (SG&A) expenses increased by **7% to $333.5 million**[148](index=148&type=chunk) - Operating income increased **241% to $77.8 million** from $22.8 million in the prior year[151](index=151&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) - The company ended the quarter with **$300.5 million in cash** and no outstanding borrowings under its credit facility[167](index=167&type=chunk)[168](index=168&type=chunk) - Capital expenditures were **$36.2 million** for the quarter, with a full-year projection of **$200 million to $250 million**[176](index=176&type=chunk) - The company returned **$24.6 million in dividends** and **$34.9 million in share repurchases** to shareholders[171](index=171&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk exposure from foreign exchange fluctuations has not materially changed since Fiscal 2023 - The primary market risk is foreign exchange rate risk from Canadian and Mexican operations, with no material change in the risk profile[183](index=183&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal controls over financial reporting were effective - Management concluded that disclosure controls and procedures were **effective** as of the end of the quarter[185](index=185&type=chunk) - There were **no material changes** in internal control over financial reporting during the quarter[186](index=186&type=chunk) [PART II - OTHER INFORMATION](index=36&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company does not expect current legal proceedings to have a material adverse effect on its financial condition - The company does not expect the resolution of currently pending legal matters to have a **material adverse effect**[187](index=187&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) This section confirms no material changes to risk factors previously disclosed in the company's Annual Report on Form 10-K - There have been **no material changes** to the company's risk factors as disclosed in the Fiscal 2023 Form 10-K[189](index=189&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company details its repurchase of 1.5 million shares under a new 30 million share repurchase authorization Issuer Purchases of Equity Securities (13 Weeks Ended May 4, 2024) | Period | Total Shares Purchased | Average Price Paid | Shares Purchased as Part of Public Program | | :--- | :--- | :--- | :--- | | Month 1 | 101,013 | $22.48 | 0 | | Month 2 | 1,208,269 | $23.11 | 846,451 | | Month 3 | 721,572 | $23.55 | 653,549 | | **Total** | **2,030,854** | **$23.30** | **1,500,000** | - A new share repurchase program for **30 million shares** was authorized, with **28.5 million shares** remaining available[178](index=178&type=chunk)[190](index=190&type=chunk) [Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the report, including stock award agreements and CEO/CFO certifications - Filed exhibits include forms of stock award agreements, CEO/CFO certifications, and XBRL data files[196](index=196&type=chunk)