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Sydney Sweeney Effect Wearing Off? American Eagle's Stock Growth Score Nosedives: Other Apparel Stocks Follow Suit - American Eagle Outfitters (NYSE:AEO)
Benzingaยท 2025-09-30 08:46
Core Insights - Several American apparel brands and retailers are experiencing a decline in their Growth metrics according to Benzinga's Edge Stock Rankings [1][2] Group 1: American Eagle Outfitters Inc. - American Eagle Outfitters Inc. has seen a significant drop in its growth score from 89.65 to 70.49 over the past week, attributed to the fading momentum from the "Sydney Sweeney effect" [4][5] - Despite the decline, the stock maintains high scores in Value and Growth, with favorable price trends across short, medium, and long terms [5] Group 2: Reitmans Canada Ltd. - Reitmans Canada Ltd. experienced a drastic fall in its Growth metrics from 98.44 to 30.58, following weak quarterly results [6] - The company reported a 4.1% year-over-year revenue decline and a net loss of $7.2 million in Q1, with comparable sales dropping 4.5% [6] - In Q2, revenue remained flat, and same-store sales declined by 1.3%, alongside a 220-basis-point drop in gross margins due to higher promotions and foreign exchange headwinds [7] Group 3: Caleres Inc. - Caleres Inc. saw its Growth score decrease from 91.59 to 48.91 within a week, impacted by soft sales, tariff headwinds, and margin erosion [8] - The company reported a 3.6% year-over-year revenue decline to $658.5 million in Q2 and missed earnings estimates, with gross margins dropping by 210 basis points primarily due to tariff-related issues [8][9]