- American Eagle management's past efforts to build the e-commerce business have really paid off during the pandemic, significantly helping offset in-store traffic losses.
- Management has also made excellent progress on multiple margin-improvement initiatives, including in-store assortment, supply chain, occupancy, and e-commerce profitability.
- American Eagle doesn't operate in a vacuum, and I worry that the benign promotional environment will shift as the economy re-opens after the national vaccination campaign winds down.
- A bull-case scenario can support a fair value well into the $30s, but I believe today's price is pretty fair.
For further details see:
American Eagle Executing Extremely Well, But Industry Behavior Is Key