Source: Barron's
In its most recent quarter, American Eagle Outfitters (AEO) reported revenue of $1.07 billion and EPS of $0.48. The company beat on revenue and earnings. I had the following takeaways on the quarter.
Solid Revenue Growth
Retailers have struggled to grow earnings this season. Several have had to offer promotions in order to drive traffic into stores. American Eagle's Aerie Brand is growing like a bad weed. I assumed the company would not necessarily have to engage in heavy discounting in order to drive revenue growth. That may not have been the case