We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
American Eagle (AEO) Continues to Rise: Will it Continue?
Read MoreHide Full Article
American Eagle Outfitters (AEO - Free Report) has demonstrated remarkable trends driven by its focus on profit improvement initiatives and maintaining flexibility in operations. By staying agile and capitalizing on demand while keeping profitability in mind, the company has positioned it well for the future. Brand initiatives, strong products, engaging marketing and an exceptional shopping experience contribute to its overall success.
Shares of American Eagle have gained 26.2% in the past six months compared with the industry’s growth of 24.1%. Driven by robust demand and brand strength, AEO currently sports a Zacks Rank #1 (Strong Buy).
In fourth-quarter fiscal 2023, American Eagle demonstrated strong performance with a 12% increase in revenues, driven by an 8% rise in comparable sales. Revenue growth was backed by rising brand momentum and improvements across channels, as well as a successful holiday season.
Sales benefited from growth across various product categories, including jeans, pants, tops, sweaters and outerwear. AEO’s fiscal 2023 results were mainly backed by sequential improvement across brands and channels, with achieving record revenues for both AE & Aerie.
Image Source: Zacks Investment Research
More Insights
American Eagle’s Aerie brand has indeed experienced a remarkable revenue growth of 16% in the fiscal fourth quarter. Comps for the Aerie brand improved 13%. Sturdy demand in its core apparel and strength in the OFFLINE brand, both of which posted double-digit growth, aided Aerie.
The Aerie brand is a key growth engine for American Eagle and remains on track to reach the next brand milestone of $2 billion in sales, out of which it has already achieved $1.5 billion in revenues. Additionally, expanding the Aerie brand into new markets and investing in innovation are few more strategic initiatives undertaken by the company.
American Eagle has a clear vision for growth and profitability through its Real Power Real Growth and Powering Profitable Growth plans. This growth can be achieved by focusing on areas such as real estate optimization, inventory management, omni-channel strategies and customer-centric initiatives.
The targets in the new Powering Profitable Growth plan are achievable, which include annual operating income expansion in the mid-to-high teens and a 10% operating margin over the next three years. Similarly, aiming for 3-5% annual revenue growth in 2026 reflects a strong belief in the brand’s potential for expansion.
Strategic Vision and Outlook
For fiscal 2024, management anticipates three main strategic priorities. This includes amplifying the brands, which can further help increase recognition and loyalty among customers. Secondly, with the execution of financial discipline, AEO expects to ensure efficient use of resources. Thirdly, it expects to prioritize optimization of resources.
Management expects fiscal 2024 revenues to increase 2-4% from the year-ago levels, including a one-point negative impact of one less week compared with the last year. Operating income is estimated to be between $445 million and $465 million.
American Eagle is projecting a healthy increase in comparable store sales for fiscal 2024. It anticipates comps growth to be stronger in the first half of fiscal 2024, with a mid-single-digit increase. Meanwhile, it expects comps growth of low-single digits for the second half of fiscal 2024.
3 Picks You Can’t Miss
We have highlighted three top-ranked stocks in the broader sector, namely Abercrombie & Fitch Co. (ANF - Free Report) , The Gap, Inc. (GPS - Free Report) and DICK'S Sporting Goods (DKS - Free Report) .
The Zacks Consensus Estimate for ANF’s current financial-year sales and earnings suggests growth of 5.6% and 19.1%, respectively, from the year-ago reported figures. Abercrombie has a trailing four-quarter earnings surprise of 715.6%, on average.
Gap, a leading apparel retailer, currently sports a Zacks Rank #1. GPS has a trailing four-quarter earnings surprise of 180.9%, on average.
The Zacks Consensus Estimate for GPS’ current financial-year sales and earnings suggests a decline of 0.3% and 4.9%, respectively, from the year-ago reported figures.
DICK'S Sporting operates as an omni-channel sporting goods retailer. It currently carries a Zacks Rank #2 (Buy). DKS has a trailing four-quarter earnings surprise of 3.1%, on average.
The Zacks Consensus Estimate for DICK'S Sporting’s current fiscal-year sales and earnings suggests growth of 1.3% and 2.8%, respectively, from the year-ago reported numbers.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
American Eagle (AEO) Continues to Rise: Will it Continue?
American Eagle Outfitters (AEO - Free Report) has demonstrated remarkable trends driven by its focus on profit improvement initiatives and maintaining flexibility in operations. By staying agile and capitalizing on demand while keeping profitability in mind, the company has positioned it well for the future. Brand initiatives, strong products, engaging marketing and an exceptional shopping experience contribute to its overall success.
Shares of American Eagle have gained 26.2% in the past six months compared with the industry’s growth of 24.1%. Driven by robust demand and brand strength, AEO currently sports a Zacks Rank #1 (Strong Buy).
In fourth-quarter fiscal 2023, American Eagle demonstrated strong performance with a 12% increase in revenues, driven by an 8% rise in comparable sales. Revenue growth was backed by rising brand momentum and improvements across channels, as well as a successful holiday season.
Sales benefited from growth across various product categories, including jeans, pants, tops, sweaters and outerwear. AEO’s fiscal 2023 results were mainly backed by sequential improvement across brands and channels, with achieving record revenues for both AE & Aerie.
Image Source: Zacks Investment Research
More Insights
American Eagle’s Aerie brand has indeed experienced a remarkable revenue growth of 16% in the fiscal fourth quarter. Comps for the Aerie brand improved 13%. Sturdy demand in its core apparel and strength in the OFFLINE brand, both of which posted double-digit growth, aided Aerie.
The Aerie brand is a key growth engine for American Eagle and remains on track to reach the next brand milestone of $2 billion in sales, out of which it has already achieved $1.5 billion in revenues. Additionally, expanding the Aerie brand into new markets and investing in innovation are few more strategic initiatives undertaken by the company.
American Eagle has a clear vision for growth and profitability through its Real Power Real Growth and Powering Profitable Growth plans. This growth can be achieved by focusing on areas such as real estate optimization, inventory management, omni-channel strategies and customer-centric initiatives.
The targets in the new Powering Profitable Growth plan are achievable, which include annual operating income expansion in the mid-to-high teens and a 10% operating margin over the next three years. Similarly, aiming for 3-5% annual revenue growth in 2026 reflects a strong belief in the brand’s potential for expansion.
Strategic Vision and Outlook
For fiscal 2024, management anticipates three main strategic priorities. This includes amplifying the brands, which can further help increase recognition and loyalty among customers. Secondly, with the execution of financial discipline, AEO expects to ensure efficient use of resources. Thirdly, it expects to prioritize optimization of resources.
Management expects fiscal 2024 revenues to increase 2-4% from the year-ago levels, including a one-point negative impact of one less week compared with the last year. Operating income is estimated to be between $445 million and $465 million.
American Eagle is projecting a healthy increase in comparable store sales for fiscal 2024. It anticipates comps growth to be stronger in the first half of fiscal 2024, with a mid-single-digit increase. Meanwhile, it expects comps growth of low-single digits for the second half of fiscal 2024.
3 Picks You Can’t Miss
We have highlighted three top-ranked stocks in the broader sector, namely Abercrombie & Fitch Co. (ANF - Free Report) , The Gap, Inc. (GPS - Free Report) and DICK'S Sporting Goods (DKS - Free Report) .
Abercrombie, a leading casual apparel retailer, currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ANF’s current financial-year sales and earnings suggests growth of 5.6% and 19.1%, respectively, from the year-ago reported figures. Abercrombie has a trailing four-quarter earnings surprise of 715.6%, on average.
Gap, a leading apparel retailer, currently sports a Zacks Rank #1. GPS has a trailing four-quarter earnings surprise of 180.9%, on average.
The Zacks Consensus Estimate for GPS’ current financial-year sales and earnings suggests a decline of 0.3% and 4.9%, respectively, from the year-ago reported figures.
DICK'S Sporting operates as an omni-channel sporting goods retailer. It currently carries a Zacks Rank #2 (Buy). DKS has a trailing four-quarter earnings surprise of 3.1%, on average.
The Zacks Consensus Estimate for DICK'S Sporting’s current fiscal-year sales and earnings suggests growth of 1.3% and 2.8%, respectively, from the year-ago reported numbers.