American Eagle Outfitters (NYSE:AEO)
American Eagle Outfitters, Inc. (AEO), an apparel and accessories company yesterday reported their first quarter 2016 financial results. American Eagle reported first quarter earnings of $0.22 per share which beat analyst expectations of $0.18 per share. American Eagle reported first quarter revenues increased 7% year over year to $749 million which beat analyst expectations of $731.07 million.
American Eagle Outfitters, Inc. CEO’s Comments
Jay Schottenstein, Chief Executive Officer commented, “In a tough retail environment, AEO delivered a strong first quarter, driven by compelling merchandise, strategic investments and solid execution across the organization. We achieved higher sales and profitability following strong growth last year. I’m proud of how the team delivered, and I’m optimistic about our future. We’ve built a strong model for success based on our leading brands, and will remain focused on maximizing our business and delivering profitable growth.” Business Wire
AEO Technical Analysis
AEO opened trading yesterday at $13.68 which was down from the previous days trading of $13.86. AEO closed trading yesterday at $13.39 and spiked up after market to $15.26, equivalent to a 14% increase from the closing price. Taking a look at the daily chart we can see the last time AEO traded above this price level was on April 25th when it traded at $15.33. Taking a closer look at the daily chart we can see that AEO has been on an overall decline dating back to March 18th when it traded at $16.90. AEO has a float of 163.62 million and traded 1.62 times the normal daily trading volume. For trading purposes, I would like to see AEO open trading on Thursday above $14.75 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Company Profile
American Eagle Outfitters, Inc. operates as a retailer of apparel and accessories. It offers denim, bottoms, and other apparel, as well as footwear and accessories for men and women under the American Eagle Outfitters (AEO) brand name. The company also provides intimates, including bras, undies, swim, and other products, as well as apparel and personal care products for women under the Aerie brand. In addition, it offers sports apparel under the Tailgate brand; and menswear products under the Todd Snyder New York brand name. As of January 30, 2016, the company operated 949 AEO brand stores, and 97 stand-alone and 67 side-by-side Aerie stores located in shopping malls, lifestyle centers, and street locations in the United States, Canada, Mexico, Hong Kong, China, the United Kingdom, and internationally; and 1 Tailgate store in Iowa City, Iowa. It also has license agreements with third parties to operate AEO and Aerie stores throughout Asia, Europe, Latin America, and the Middle East, as well as offers products through its Websites at ae.com, aerie.com, TailgateClothing.com, and ToddSnyder.com. American Eagle Outfitters, Inc. was founded in 1977 and is headquartered in Pittsburgh, Pennsylvania.