From NASDAQ Inc.:

American Eagle Outfitters (AEO) has seen a 32% increase in the last twelve months, with the stock price currently at around $20 per share. Despite underperforming the S&P 500, the retailer’s revenue grew 5% y-o-y in Q3. Gross margins also increased to 39.4%, indicating potential for long-term upside. AEO forecasts mid-single-digit revenue growth for fiscal 2023.

In Q3, Aerie brand grew 12% y-o-y to $393 million, while the American Eagle core brand grew 2% y-o-y to $857 million. With store revenue 3% higher and digital revenue up 10%, AEO’s fiscal 2023 revenue is likely to reach $5.2 billion. Earnings per share are forecast to be $1.34, leading to a valuation of $20 per share.

As of January 2024, AEO stock has seen a return of -5% for the month and -5% year-to-date, with total returns of 33% from 2017 to 2024. In comparison, the S&P 500 saw a return of -1% for the month, -1% year-to-date, and 112% from 2017 to 2024. AEO’s performance indicates volatility, with potential for improvement in the long term.

It remains to be seen how AEO will fare compared to its peers. The company’s performance highlights the need for expert strategies, as demonstrated by the Trefis Reinforced Value Portfolio, which returned -4% for the month, -4% year-to-date, and 583% from 2017 to 2024. As AEO navigates the uncertain economic climate, the market will be keenly watching its performance to see if there will be an upturn in the near future.



Read more: American Eagle Stock Up 32% Over Last Twelve Months, What’s Next?