American Eagle Outfitters(AEO)
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American Eagle Gains on Brand Strength & Growth Plans: Apt to Hold?
ZACKS· 2024-10-16 15:31
Company Performance and Growth - American Eagle Outfitters Inc (AEO) reported its sixth consecutive quarter of record revenues in Q2 fiscal 2024, with both top and bottom lines increasing year over year [1] - The company's earnings beat the Zacks Consensus Estimate for the fifth straight quarter, with fiscal 2024 sales and EPS estimates at $5 4 billion and $1 78, indicating year-over-year growth of 2 5% and 17 1% respectively [1] - AEO expects operating income to reach the high end of $455-$465 million range in fiscal 2024, representing 21-24% growth from adjusted operating income of $375 million in fiscal 2023 [6][7] - Comparable sales are projected to increase around 4%, with total revenues expected to grow 2-3% in fiscal 2024 [7] Strategic Initiatives - AEO's Real Power Real Growth plan focuses on profitability through real estate optimization, inventory management, omnichannel capabilities, and supply chain improvements [2] - The Powering Profitable Growth plan aims to deliver mid-to-high teens annual operating income growth, targeting over $570 million by fiscal 2026 end, with an operating margin of about 10% [2] - The company is expanding its Aerie brand through market expansion, innovation, and customer base growth [2] Brand Performance and Product Categories - American Eagle brand revenues increased 8% year over year in Q2 fiscal 2024, with comps rising 5%, marking the fourth consecutive quarter of revenue and profit growth [4] - Aerie brand sales grew 9% with comps up 4% in Q2 fiscal 2024, with the Top category showing six straight quarters of growth [4] - Soft Apparel categories (tees, shorts, tanks, pants) and Activewear expansion are key growth drivers, with positive consumer response to new categories like sleepwear, fleece, and leggings [3] - Skirts, dresses, and shorts categories remained strong performers [4] Industry Comparison and Stock Performance - AEO shares gained 18 5% over the past year, compared to the industry's 30 5% growth [7] - The company currently carries a Zacks Rank 3 (Hold) [7] Peer Performance - Nordstrom (JWN) carries a Zacks Rank 1 (Strong Buy) with current fiscal year sales expected to grow 0 6% year over year and a 29 7% earnings surprise in the last quarter [8] - Abercrombie (ANF) holds a Zacks Rank 1 with current fiscal year sales projected to grow 13% year over year and a 16 8% earnings surprise in the last quarter [8] - Boot Barn (BOOT) has a Zacks Rank 2 (Buy) with current fiscal year sales and EPS expected to grow 12% and 10 5% respectively year over year [8][9] Operational Challenges - AEO faces inflationary pressures and macroeconomic headwinds, along with evolving consumer spending patterns [5] - Selling, general and administrative expenses increased 4% year over year in Q2 fiscal 2024, potentially impacting overall profitability [5]
Here's Why American Eagle Outfitters (AEO) Gained But Lagged the Market Today
ZACKS· 2024-10-08 23:06
American Eagle Outfitters (AEO) closed the latest trading day at $21.05, indicating a +0.48% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.97%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.45%. The teen clothing retailer's stock has climbed by 10.26% in the past month, exceeding the Retail-Wholesale sector's gain of 7.36% and the S&P 500's gain of 5.41%. The investment community will be paying close attention to the earn ...
American Eagle Outfitters (AEO) Rises Higher Than Market: Key Facts
ZACKS· 2024-10-02 23:06
American Eagle Outfitters (AEO) closed at $22.11 in the latest trading session, marking a +0.96% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.01%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.08%.Shares of the teen clothing retailer witnessed a gain of 11.79% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 5.59% and the S&P 500's gain of 1.21%.Investors will be eagerly watching for the pe ...
American Eagle Outfitters (AEO) Ascends While Market Falls: Some Facts to Note
ZACKS· 2024-09-25 23:05
The most recent trading session ended with American Eagle Outfitters (AEO) standing at $20.69, reflecting a +0.98% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily loss of 0.19%. Elsewhere, the Dow lost 0.7%, while the tech-heavy Nasdaq added 0.04%.The teen clothing retailer's shares have seen a decrease of 9.74% over the last month, not keeping up with the Retail-Wholesale sector's gain of 6.04% and the S&P 500's gain of 1.95%.Market participants will be ...
AEO Stock Drops 7% in a Month: Is This an Opportune Time to Buy?
ZACKS· 2024-09-19 16:11
American Eagle Outfitters Inc. (AEO) stock has seen a downward movement since reporting its second-quarter fiscal 2024 results on Aug. 29. Although the company reported a strong quarter overall, lower-than-expected revenues disappointed investors. As a result, shares of this leading apparel retailer fell 7.2% in the past month, which was better than the industry’s decline of 18.8%.The AEO stock’s current price of $19.89 reflects a 38.1% premium to its 52-week low of $14.40. This price reflects a 24.8% disco ...
Investors Heavily Search American Eagle Outfitters, Inc. (AEO): Here is What You Need to Know
ZACKS· 2024-09-13 14:02
American Eagle Outfitters (AEO) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Over the past month, shares of this teen clothing retailer have returned -8.8%, compared to the Zacks S&P 500 composite's +4.9% change. During this period, the Zacks Retail - Apparel and Shoes industry, which American Eagle falls in, has gained 0.9%. The key question now is: What could be the stock's ...
American Eagle Outfitters Q2 2024 Finds It More Attractively Valued, But Still Only Fair
Seeking Alpha· 2024-09-11 14:34
Morsa Images American Eagle Outfitters' (NYSE:AEO) 2Q24 results were in line with the company's guidance. Comparables grew 4%, and absolutes grew above that (thanks to an extra back-to-school week). Lower markdowns and higher AURs have been expanding the company's margins. My thesis about AEO has not changed much since my last article in May. AEO is a leading fast-fashion retailer with no financial leverage and an effective assortment strategy that is providing growth in this challenging economic contex ...
American Eagle Outfitters: Rating Upgrade As Valuation Has Come Down
Seeking Alpha· 2024-09-04 15:58
Morsa Images/DigitalVision via Getty Images Summary Following my coverage on American Eagle Outfitters (NYSE:AEO) in June 2024, in which I recommended a hold rating due to my expectation that the stock will remain under pressure given the visible margin headwinds and that the valuation was not attractive, this post is to provide an update on my thoughts on the business and stock. I am upgrading my rating from hold to buy as I see a tactical opportunity to make ~7% returns over the next few months if AEO can ...
American Eagle's Brands & Growth Efforts Seem Good: Apt to Hold Stock
ZACKS· 2024-09-03 16:25
American Eagle Outfitters, Inc. (AEO) remains well-poised to tap the positive trends in the fashion arena, thanks to its digital endeavors and other robust strategies, including the Powering Profitable Growth plan. The company is gaining from immense brand strength and sturdy demand for its products that resonate well with the customers. American Eagle's brand strength and gains from progress on its Powering Profitable Growth strategy have been bolstering its performance for a while. Its earnings beat the Z ...
American Eagle Outfitters(AEO) - 2025 Q2 - Quarterly Report
2024-08-29 20:05
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 3, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 1-33338 American Eagle Outfitters, Inc. (Exact name of registrant as specified in its charter) Delaware No. 13-2721761 (State or other jurisdiction of incorporation or organiza ...