American Eagle Outfitters will release its second-quarter earnings report on Wednesday. Here’s what you can expect.
2019 has been a difficult year for many retail stocks. JCPenney is in danger of losing its stock exchange listing due to its low valuation. And earnings reports from stores like Macy’s and Nordstrom showed sluggish growth and contracting margins.
So in the midst of mall-based stocks that are quickly falling out of favor with consumers, American Eagle stands out thanks to its robust growth and favorable margins. American Eagle continues to prosper thanks to its popularity with teens and body-positive marketing message.
This Wednesday, American Eagle is set to release its second-quarter earnings report. Investors will be looking for stable growth profit margins and strong guidance for the company going forward. Listed below are four things you should know about AEO stock pre-earnings.
American Eagle is incredibly popular with teens
American Eagle is the second most popular teen brand in the U.S., falling short only to Nike. The company’s jeans are available in a variety of sizes and cuts for all different body types. American Eagle has seen 23 consecutive quarters of strong jeans sales.
Aerie is the company’s intimate apparel line and it continues to take market share from Victoria’s Secret. This is largely thanks to its huge variety of styles and the company’s body-positive message.
The company’s sales continue to grow
American Eagle’s gross margins have remained steady over the past five years. This counts for a lot, considering many of its biggest competitors filed for bankruptcy. And the company continues to open new stores. American Eagle generated positive comps for the past 17 quarters and Aerie has grown for the past 18 quarters.