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) Rewards Investors With 25% Dividend Hike
Read MoreHide Full Article
The dividend hike announcement by American Eagle Outfitters, Inc. (AEO - Free Report) highlights the company’s growth prospects and commitment toward shareholders.
The company has approved a 25% increase in the quarterly cash dividend, raising it from 10 cents to 12.5 cents per share. The enhanced dividend will be paid out on Jan 19, 2024, to shareholders of record as of Jan 5, 2024.
This move reflects the strength of the company’s fundamentals and cash flows, alongside showcasing its confidence in its prospects. The decision to increase dividends also reinforces the company's strategic direction as it enters 2024.
Image Source: Zacks Investment Research
What’s More?
American Eagle has been benefiting from brand strength, solid demand and products that resonate with customers, driven by exciting new marketing campaigns. Also, the company is on track with its Real Power Real Growth value creation plan, which has been aiding its performance.
The plan is driving profitability through real estate and inventory-optimization efforts, omni-channel and customer focus, and investments to improve the supply chain. As part of the Real Power Real Growth plan, American Eagle will continue to pursue opportunities to grow the Aerie brand through expansion into newer markets, innovation and a growing customer base.
A couple of weeks ago, American Eagle reported fiscal third-quarter earnings of 49 cents per share, which rose 17% year over year and surpassed the Zacks Consensus Estimate of 48 cents. Total net revenues of $1,301.1 million improved 5% year over year, beating the Zacks Consensus Estimate of $1,275 million. Revenue growth was driven by rising brand momentum and tremendous fall season merchandise collection. Store revenues grew 3% year over year in the quarter, while digital revenues rose 10%.
As of Oct 28, 2023, American Eagle’s cash and cash equivalents totaled $240.9 million, and liquidity was $900 million, with no outstanding debt.
Wrapping Up
The increase in quarterly cash dividends by AEO is a multifaceted event. It not only benefits the shareholders directly through increased payouts but also serves as a positive sign regarding the company's financial health, strategic direction and confidence in its future performance.
Shares of this Zacks Rank #2 (Buy) company have rallied 74.4% in the past six months compared with the industry’s growth of 14.1%.
Bet Your Bucks on These 3 Other Hot Stocks
A few better-ranked stocks are Abercrombie & Fitch Co. (ANF - Free Report) , The Gap, Inc. and Deckers Outdoor Corporation (DECK - Free Report) .
Abercrombie operates as a specialty retailer of premium, high-quality casual apparel. It currently sports a Zacks Rank #1 (Strong Buy). The company recorded an EPS surprise of 60.5% in the last reported quarter.
The Zacks Consensus Estimate for Abercrombie’s current fiscal-year sales suggests growth of 13.3% from the year-ago reported number. ANF has a trailing four-quarter earnings surprise of 713%, on average.
The Gap is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. It currently flaunts a Zacks Rank #1.
The Zacks Consensus Estimate for The Gap’s current fiscal-year earnings indicates growth of 387.5% from the previous year’s reported numbers. GPS has a trailing four-quarter average earnings surprise of 137.9%.
Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories developed for outdoor sports and other lifestyle-related activities. It has a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Deckers’ current fiscal-year sales and earnings suggests growth of 11.4% and 20.9%, respectively, from the year-ago reported numbers. DECK has a trailing four-quarter earnings surprise of 26.3%, on average.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
American Eagle (AEO) Rewards Investors With 25% Dividend Hike
The dividend hike announcement by American Eagle Outfitters, Inc. (AEO - Free Report) highlights the company’s growth prospects and commitment toward shareholders.
The company has approved a 25% increase in the quarterly cash dividend, raising it from 10 cents to 12.5 cents per share. The enhanced dividend will be paid out on Jan 19, 2024, to shareholders of record as of Jan 5, 2024.
This move reflects the strength of the company’s fundamentals and cash flows, alongside showcasing its confidence in its prospects. The decision to increase dividends also reinforces the company's strategic direction as it enters 2024.
Image Source: Zacks Investment Research
What’s More?
American Eagle has been benefiting from brand strength, solid demand and products that resonate with customers, driven by exciting new marketing campaigns. Also, the company is on track with its Real Power Real Growth value creation plan, which has been aiding its performance.
The plan is driving profitability through real estate and inventory-optimization efforts, omni-channel and customer focus, and investments to improve the supply chain. As part of the Real Power Real Growth plan, American Eagle will continue to pursue opportunities to grow the Aerie brand through expansion into newer markets, innovation and a growing customer base.
A couple of weeks ago, American Eagle reported fiscal third-quarter earnings of 49 cents per share, which rose 17% year over year and surpassed the Zacks Consensus Estimate of 48 cents. Total net revenues of $1,301.1 million improved 5% year over year, beating the Zacks Consensus Estimate of $1,275 million. Revenue growth was driven by rising brand momentum and tremendous fall season merchandise collection. Store revenues grew 3% year over year in the quarter, while digital revenues rose 10%.
As of Oct 28, 2023, American Eagle’s cash and cash equivalents totaled $240.9 million, and liquidity was $900 million, with no outstanding debt.
Wrapping Up
The increase in quarterly cash dividends by AEO is a multifaceted event. It not only benefits the shareholders directly through increased payouts but also serves as a positive sign regarding the company's financial health, strategic direction and confidence in its future performance.
Shares of this Zacks Rank #2 (Buy) company have rallied 74.4% in the past six months compared with the industry’s growth of 14.1%.
Bet Your Bucks on These 3 Other Hot Stocks
A few better-ranked stocks are Abercrombie & Fitch Co. (ANF - Free Report) , The Gap, Inc. and Deckers Outdoor Corporation (DECK - Free Report) .
Abercrombie operates as a specialty retailer of premium, high-quality casual apparel. It currently sports a Zacks Rank #1 (Strong Buy). The company recorded an EPS surprise of 60.5% in the last reported quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Abercrombie’s current fiscal-year sales suggests growth of 13.3% from the year-ago reported number. ANF has a trailing four-quarter earnings surprise of 713%, on average.
The Gap is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. It currently flaunts a Zacks Rank #1.
The Zacks Consensus Estimate for The Gap’s current fiscal-year earnings indicates growth of 387.5% from the previous year’s reported numbers. GPS has a trailing four-quarter average earnings surprise of 137.9%.
Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories developed for outdoor sports and other lifestyle-related activities. It has a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Deckers’ current fiscal-year sales and earnings suggests growth of 11.4% and 20.9%, respectively, from the year-ago reported numbers. DECK has a trailing four-quarter earnings surprise of 26.3%, on average.