Thursday, August 21, 2014 4:05:57 PM
3:48p ET August 21, 2014 (Benzinga)
American Eagle Outfitters (NYSE: AEO) posted a 70 percent decline in second-quarter earnings, while same-store sales fell seven percent, but it wasn't as bad as Wall Street expected.
The apparel retailer's shares opened sharply higher Thursday and climbed during the day.
"It was enough to fend off fears," Nomura's Simeon A. Siegel said of recent results.
Siegel said he expects cost cutting and improving margins, but wants more information on plans for discounting. Siegel maintained a Neutral rating but raised his target to $12 a share.
Citi's Oliver Chen maintained a Sell rating but was nonetheless "impressed" with the company's second-quarter merchandise margin, inventory control and a slowing rate of decline in same-store sales.
The outlook for lower costs and a four percent dividend yield suggest strong fundamentals for the stock. But Chen wants to see fewer promotions and more consistent traffic before upgrading.
FBR's Susan Anderson said margin expansion in the second half of 2014 "seems achievable" but lower inventory and fewer promotions suggest that improving same-store sales "could be difficult."
Anderson maintained a Market Perform rating and $12 target Monday.
American Eagle recently traded up three percent to $13.38 Less
Recent AEO News
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 09/19/2024 09:40:44 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/17/2024 09:25:45 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/29/2024 08:05:26 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/29/2024 12:59:35 PM
- AEO Inc. Reports Record Second Quarter Revenue and Meaningful Operating Margin Expansion; Updates Full-Year Operating Income Outlook to the High-End of Prior Guidance • Business Wire • 08/29/2024 12:00:00 PM
- U.S. Futures Rise; Oil Prices Dip Amid Libyan Supply Concerns and Inventory Drop • IH Market News • 08/29/2024 10:11:58 AM
- AEO Inc. to Report Second Quarter Fiscal 2024 Results on August 29th • Business Wire • 08/08/2024 12:30:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/07/2024 08:45:52 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/05/2024 11:38:26 PM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 08/05/2024 11:37:23 PM
- AEO Inc. Appoints Stephanie Pugliese to its Board of Directors • Business Wire • 08/01/2024 12:30:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/30/2024 09:16:51 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/30/2024 09:16:50 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/30/2024 09:16:48 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/30/2024 09:16:47 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/30/2024 09:16:44 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/30/2024 09:16:43 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/30/2024 09:16:41 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/30/2024 09:16:40 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/30/2024 09:16:39 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/30/2024 09:16:38 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/30/2024 09:16:37 PM
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