- American Eagle released its Q2 results earlier this month, reporting record Q2 revenue of ~$1.19 billion, up 35% year-over-year and high double-digits vs. pre-pandemic levels.
- The strong performance was driven by increased traffic as economies re-opened, and another quarter of double-digit sequential growth for Aerie, which posted its 27th consecutive quarter of double-digit growth.
- However, while earnings estimates continue to climb and American Eagle has pulled back sharply, the stock is correcting from a level where it was priced for near perfection in June.
- So, while the business continues to remain very strong, I don't see enough of a margin of safety yet at $26.90 to rush in and buy the stock.
For further details see:
American Eagle: Another Blowout Quarter In Q2