AEO - This Key Metric Is Down 100% at American Eagle Outfitters and Investors Should Be Thrilled
2023-12-15 08:45:00 ET
American Eagle Outfitters (NYSE: AEO) is a retail staple in the teen basics space. That said, teens are notoriously fickle customers, which complicates things. But American Eagle has just achieved something that should make the retailer's life much easier over the near term -- and it couldn't have happened at a better time. Here's what you need to know.
When Dollar Tree reported third-quarter earnings, CFO Jeff Davis noted that a lot of the growth "is actually coming from that higher income customer" with incomes of $125,000 or more. Similarly, Burlington recently reported it was seeing increased demand from "trade-down" customers and was leaning into more higher-priced items, which were selling relatively well.
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This Key Metric Is Down 100% at American Eagle Outfitters, and Investors Should Be Thrilled