2024-06-03 13:06:57 ET
Summary
- AEO's 1Q24 results showed positive surprise in topline performance, but there are concerns about upcoming gross margin headwinds and increased operating costs per store.
- SSS growth for both American Eagle and Aerie brands was strong.
- There are uncertainties about AEO's ability to achieve its FY24 EBIT margin target, making the risk/reward situation unattractive.
Summary
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American Eagle Outfitters Q1: Visible Margin Headwinds With Unattractive Risk/Reward Profile