While malls and department stores are closing and some of the ones in operation are wallowing in promotions to keep operating, there are still some retail chains that are holding up well under the headwinds. American Eagle Outfitters (NYSE: AEO) has emerged as a top destination among teens and young adults, and the company has seen high growth even in a transitioning retail landscape.
Oddly, that solid performance hasn't translated into an increased share price. The value of the stock decreased more than a quarter in 2019, and it's moved up only slightly year-to-date in 2020. Let's take a look at possible reasons why.
American Eagle has captured the youth apparel market with its on-trend designs and careful attention to the needs of its customers. It came in second (after Nike) for best-loved teen apparel brand in the latest Piper Jaffray Taking Stock With Teens survey, and the 2019 third quarter earnings report saw its 19th consecutive quarter of comp sales growth as well as record third-quarter revenue.