You watched the stock beat its rivals, but the real action was a civil war between its own two brands.
If you held American Eagle Outfitters (AEO) over the past year, you did very, very well. The stock delivered a +71% return, leaving the S&P 500's +21% gain and retail peers like ANF (+19.5%) in the dust. You might ******* ume the iconic American Eagle brand was firing on all cylinders to post a run like that.
You would be wrong.
Photo by Pexels on Pixabay
What Fueled The Rocket? A 34% Jump At Aerie.
The real story here is a tale of two wildly different businesses under one roof. The company's growth engine isn't its namesake denim brand. It's Aerie, the loungewear and intimates line, which has become a powerhouse in its own right. In its most recent quarter, Aerie's revenue surged 34% to $481 million, with comparable sales up an incredible 25%. This isn't a small side project anymore; management confirmed the brand is now "surpassing $2 billion on a trailing 12-month basis." That's the kind of momentum that gets a stock re-rated.
#real #isn 't
If you held American Eagle Outfitters (AEO) over the past year, you did very, very well. The stock delivered a +71% return, leaving the S&P 500's +21% gain and retail peers like ANF (+19.5%) in the dust. You might ******* ume the iconic American Eagle brand was firing on all cylinders to post a run like that.
You would be wrong.
Photo by Pexels on Pixabay
What Fueled The Rocket? A 34% Jump At Aerie.
The real story here is a tale of two wildly different businesses under one roof. The company's growth engine isn't its namesake denim brand. It's Aerie, the loungewear and intimates line, which has become a powerhouse in its own right. In its most recent quarter, Aerie's revenue surged 34% to $481 million, with comparable sales up an incredible 25%. This isn't a small side project anymore; management confirmed the brand is now "surpassing $2 billion on a trailing 12-month basis." That's the kind of momentum that gets a stock re-rated.
#real #isn 't
2 days ago
