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American Eagle Outfitters Inc.

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American Eagle has lagged the broader sector in the past three months, largely due to soft store traffic and stiff competition that has been looming over the retail space. Plagued by these factors, American Eagle posted dismal earnings performance in first-quarter fiscal 2017. Further, the company’s soft second quarter view and recently announced store closure plans have been deterrents for the stock. The company has been closing down stores to combat the decline in sales and higher store operating costs as traffic continues to remain soft. The company plans to shut down 25–40 stores in fiscal 2017. Estimates for the current fiscal have been going down lately. Nonetheless, the company’s solid online sales, which were backed by omni-channel initiatives and efforts to enhance customer experience, continue to boost comps. In fact, the aerie brand posted double-digit comps growth for the 13th straight time this quarter.

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