- American Eagle released its Q1 results last week, reporting quarterly revenue of $1,055 million, a 2% increase in the year-ago period.
- While Aerie continued its impressive growth, its core AE brand saw declining sales year-over-year, and the company admitted to being too optimistic for the current environment.
- Combined with continued supply chain headwinds, this weighed on margins, with further margin pressure in Q2 as the company clears through excess inventory.
- However, with the stock down nearly 70% from its highs and heading into this difficult macro environment in better shape than in previous instances, I would view any pullbacks below $11.60 as buying opportunities.
For further details see:
American Eagle: Further Weakness Should Present A Buying Opportunity