- Leading youth fashion brand American Eagle reported record quarterly results but is now down 20% since late-November, with high short interest.
- Its Aerie brand segment is like a mini-Lululemon and has had 28 quarters of double-digit revenue growth.
- Aerie alone could be worth as much as 146% of American Eagle's market cap, when comparing it to other high growth apparel peer valuations.
- Acquisitions in supply-chain add to an already strong supply-chain leader in the sector.
- American Eagle has a compelling narrative of outperforming execution, a mini-Lululemon and a successful challenge against Amazon in youth apparel.
For further details see:
American Eagle: Aerie Brand Segment Alone Worth 146% Of AEO's Market Cap