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American Eagle's (AEO) Holiday Sales Up 8%, Q4 View High
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American Eagle Outfitters, Inc. (AEO - Free Report) is doing well on the bourses, thanks to its digital endeavors and other robust strategies including the Real Power Real Growth Plan. The company is gaining from brand strength and solid demand for its products that resonate well with customers. Buoyed by such tailwinds, management has announced sturdy holiday results. It raised the view for the fourth quarter of fiscal 2023 on record holiday sales and robust merchandise margins.
The company said that fourth quarter-to-date revenues, through Saturday, Dec 30, 2023, increased roughly 8%, with American Eagle rising in high-single digits and Aerie growing in the low teens. American Eagle is experiencing growth across its brands. Moving into 2024, management is confident about delivering solid earnings growth and operating rate improvement with inventory and promotional discipline, expense control prioritization and gain from profit-improvement initiatives.
As a result, management projected fourth-quarter revenues to rise in low-double digits, including a four-point contribution from the 53rd week. It estimated operating profit of about $130 million, higher than the earlier guided range of $105-$115 million. The view does not include potential asset impairment and restructuring charges.
What’s More?
Shares of this apparel and footwear dealer have surged a whopping 73% compared with the industry’s 18.4% growth in the six-month time frame. A VGM Score of A further adds to the strength of this current Zacks Rank #2 (Buy) company.
Image Source: Zacks Investment Research
American Eagle is on track with its Real Power Real Growth value-creation plan, which has been aiding the company’s performance for a while now. The plan is driving profitability through real estate and inventory-optimization efforts, omnichannel and customer focus, and investments to improve the supply chain.
As part of the aforesaid initiative, American Eagle will continue to pursue opportunities to grow the Aerie brand through expansion into newer markets, innovation and a wider customer base. Management also expects to undertake initiatives to deliver growth and sustained profitability for the American Eagle brand.
American Eagle’s Aerie brand has also been exhibiting momentum for quite some time now. Sturdy demand in its core apparel, activewear extension, strength in the OFFLINE brand and renewed momentum in intimates have been aiding the brand’s growth. Strength in its core apparel collection, particularly in fleece, bottoms and tops, is acting as a major growth driver. Also, its activewear extension, OFFLINE by Aerie, bodes well on the back of tops, sports bras, active shorts and fashion items. Management expects 25 store openings in fiscal 2023.
Other Stocks to Consider
We have highlighted three other top-ranked stocks, namely Abercrombie & Fitch (ANF - Free Report) , Gap and Hibbett .
The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales suggests growth of 13.5% from the year-ago reported figure. ANF delivered an earnings surprise of 60.5% in the last reported quarter.
Gap, a fashion retailer of apparel and accessories, currently sports a Zacks Rank of 1. The company has a trailing four-quarter earnings surprise of 137.9%, on average.
The Zacks Consensus Estimate for Gap’s current financial-year earnings per share indicates growth of 387.5% from the year-ago reported figure.
Hibbett, the key sporting goods retailer, currently sports a Zacks Rank of 1. HIBB delivered an average earnings surprise of 24.2% in the trailing four quarters.
The Zacks Consensus Estimate for Hibbett’s current financial-year sales indicates growth of 1.7% from the year-ago reported figure.
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American Eagle's (AEO) Holiday Sales Up 8%, Q4 View High
American Eagle Outfitters, Inc. (AEO - Free Report) is doing well on the bourses, thanks to its digital endeavors and other robust strategies including the Real Power Real Growth Plan. The company is gaining from brand strength and solid demand for its products that resonate well with customers. Buoyed by such tailwinds, management has announced sturdy holiday results. It raised the view for the fourth quarter of fiscal 2023 on record holiday sales and robust merchandise margins.
The company said that fourth quarter-to-date revenues, through Saturday, Dec 30, 2023, increased roughly 8%, with American Eagle rising in high-single digits and Aerie growing in the low teens. American Eagle is experiencing growth across its brands. Moving into 2024, management is confident about delivering solid earnings growth and operating rate improvement with inventory and promotional discipline, expense control prioritization and gain from profit-improvement initiatives.
As a result, management projected fourth-quarter revenues to rise in low-double digits, including a four-point contribution from the 53rd week. It estimated operating profit of about $130 million, higher than the earlier guided range of $105-$115 million. The view does not include potential asset impairment and restructuring charges.
What’s More?
Shares of this apparel and footwear dealer have surged a whopping 73% compared with the industry’s 18.4% growth in the six-month time frame. A VGM Score of A further adds to the strength of this current Zacks Rank #2 (Buy) company.
Image Source: Zacks Investment Research
American Eagle is on track with its Real Power Real Growth value-creation plan, which has been aiding the company’s performance for a while now. The plan is driving profitability through real estate and inventory-optimization efforts, omnichannel and customer focus, and investments to improve the supply chain.
As part of the aforesaid initiative, American Eagle will continue to pursue opportunities to grow the Aerie brand through expansion into newer markets, innovation and a wider customer base. Management also expects to undertake initiatives to deliver growth and sustained profitability for the American Eagle brand.
American Eagle’s Aerie brand has also been exhibiting momentum for quite some time now. Sturdy demand in its core apparel, activewear extension, strength in the OFFLINE brand and renewed momentum in intimates have been aiding the brand’s growth. Strength in its core apparel collection, particularly in fleece, bottoms and tops, is acting as a major growth driver. Also, its activewear extension, OFFLINE by Aerie, bodes well on the back of tops, sports bras, active shorts and fashion items. Management expects 25 store openings in fiscal 2023.
Other Stocks to Consider
We have highlighted three other top-ranked stocks, namely Abercrombie & Fitch (ANF - Free Report) , Gap and Hibbett .
Abercrombie & Fitch, a leading casual apparel retailer, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales suggests growth of 13.5% from the year-ago reported figure. ANF delivered an earnings surprise of 60.5% in the last reported quarter.
Gap, a fashion retailer of apparel and accessories, currently sports a Zacks Rank of 1. The company has a trailing four-quarter earnings surprise of 137.9%, on average.
The Zacks Consensus Estimate for Gap’s current financial-year earnings per share indicates growth of 387.5% from the year-ago reported figure.
Hibbett, the key sporting goods retailer, currently sports a Zacks Rank of 1. HIBB delivered an average earnings surprise of 24.2% in the trailing four quarters.
The Zacks Consensus Estimate for Hibbett’s current financial-year sales indicates growth of 1.7% from the year-ago reported figure.