American Eagle On Track To $1B Sales In 1Q; Shares Up 5.5%
Market News

American Eagle On Track To $1B Sales In 1Q; Shares Up 5.5%

American Eagle Outfitters shares were up by 5.5% in extended hours trading on April 14 as the company provided a positive business update for the first quarter. The clothing, accessories and personal care retailer said that its business was on track to achieving revenues over $1 billion in 1Q.

American Eagle Outfitters (AEO) expects 1Q revenue growth in the mid-teens compared to pre-COVID 1Q levels. The company expects operating income of $120 million compared to $48 million reported in the first quarter of 2019.

American Eagle Outfitters’ Executive Chairman of the Board and CEO, Jay Schottenstein commented, “In light of the current environment, it’s truly gratifying to see consumer optimism, strong demand across channels and loyalty for our brands continue. I’m amazed by the incredible momentum of Aerie, which is consistently reaching new heights and exceeding our expectations.”

“We are seeing great progress at American Eagle, with stronger merchandise, marketing and inventory management clearly demonstrating the power and true potential of our leading brand. Real Growth value creation plan, with our sights set on achieving our 2023 financial targets and generating superior shareholder returns,” Schottenstein added. (See American Eagle Outfitters stock analysis on TipRanks)

The company is seeing rising demand across the American Eagle and Aerie brands, an increase in full-priced selling and strong margin generation in 1Q.

Last week, RBC Capital analyst Kate Fitzsimons reiterated a Buy rating and a price target of $33 on the stock. Fitzsimons expects AEO to post 2Q EPS of $0.02.

Overall, the Street is bullish on the stock with a Strong Buy consensus rating based on 9 Buys and 2 Holds. The average analyst price target of $31.18 implies approximately 5.5% downside potential to current levels.

Related News:
SAP Posts Fastest Cloud Business Growth In Five Years During 1Q, Raises Outlook
Public Storage Snaps Up ezStorage For $1.8B
Gilead’s Bladder Cancer Drug Trodelvy Gets FDA Nod


Price Change
S&P 500
Dow Jones
Nasdaq 100

Popular Articles