American Eagle continues its strong run
This could be a turnaround year for the teen specialty retailer.
Considering American Eagle's better inventory management, lower markdowns and strong sales in this quarter, we believe 2012 could be a turnaround year for the company. American Eagle competes with other teen specialty retailers such as Abercrombie & Fitch (ANF), Aeropostale (ARO) and Gap Inc. (GPS).
2012 -- a potential turnaround year for American Eagle Outfitters
This year has started on a positive note for American Eagle Outfitters. While a 35% reduction in inventories was the primary catalyst behind the growth after Q4 FY11 earnings, solid sales in February and good traction in key apparel categories have carried forward this positive momentum.
Additionally, the new CEO Robert Hanson is also living up to market expectations. Hanson has been instrumental in American Eagle's successful spring endeavors, and the market expects this trend to continue.
We also anticipate the company will begin to benefit from declining cotton prices starting this quarter, which should improve American Eagle's margins, going ahead.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
As geopolitical tensions threaten to spin out of control, investors are wondering how best to position their portfolios for the global turmoil.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.