Back to top

Analyst Blog

It seems that investors are losing confidence in American Eagle Outfitters Inc. (AEO - Analyst Report), after this casual apparel and accessories retailer disappointed with its fourth-quarter fiscal 2013 performance. Shares of this Zacks Rank #4 (Sell) have dropped about 9.6% since the earnings announcement on Mar 11, whereas year-to-date the stock has fallen roughly 19.5%. Alongside, the stock reached a 52-week low of $11.48, yesterday.

Estimates for American Eagle have shown a downtrend since the company posted the results. The softness in results triggered a downtrend in the Zacks Consensus Estimates, as analysts become less constructive on the stock’s future performance.

This is evident from the movement witnessed in the Zacks Consensus Estimate that tumbled 24.4% to 65 cents for fiscal 2014 in the past 30 days. For fiscal 2015, the Zacks Consensus Estimate decreased 21.3% to 85 cents in the same period.

American Eagle posted fourth-quarter fiscal 2013 adjusted earnings of 27 cents a share, plunging 50.9% from the prior-year quarter. The year-over-year decline was mainly due to lower sales and weak merchandise margins, partially offset by effective cost management.

American Eagle's net sales declined 6.7% year over year to $1,041.7 million in the fourth quarter and came below the Zacks Consensus Estimate of $1,065 million.

Battered by the dismal results and harsh winter weather, the company came up with a bleak outlook for the first quarter of fiscal 2014. American Eagle projects earnings per share for the first quarter of fiscal 2014 to break even against 18 cents earned in the first quarter of fiscal 2013.

Other Stocks that Warrant a Look

Other better-ranked retail stocks that look promising and are expected to continue with their upbeat performance include Hanesbrands Inc. (HBI - Analyst Report), Foot Locker, Inc. (FL - Snapshot Report) and American Apparel, Inc. (APP - Snapshot Report). All these stocks carry a Zacks Rank #2 (Buy).

Read the Full Research Report on AEO
Read the Full Research Report on FL
Read the Full Research Report on HBI
Read the Full Research Report on APP

Zacks Investment Research

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%