Summary
- AEO is growing revenue at high single digits. This is stellar for a retailer in this environment.
- Its secret weapon could spur top line growth for several quarters.
- Stagnant growth in EBITDA makes AEO a hold.
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Source: Barron's
Online retailers continue to disrupt the retail space; bricks-and-mortar stores that have not turned the corner on building a digital platform are getting exposed. Luckily for American Eagle Outfitters (AEO) it is delivering online sales and has one of the hottest brands in all of retail.
In its most recent quarter, the company generated revenue of $886 million, which grew 8% Y/Y. High single-digit revenue growth in retail is difficult to come by. American Eagle's performance bested that of Urban Outfitters (URBN) and Abercrombie & Fitch (ANF) which grew revenue by 0% and 1%, respectively.
