American Eagle (AEO) Q1 Earnings Preview: Key Factors to Keep an Eye On

American Eagle Outfitters, a popular young adult apparel retailer, is scheduled to release its first-quarter earnings report soon. In the previous quarter, American Eagle reported revenues of $1.60 billion, in line with analyst expectations and a 4.4% decrease from the previous year. The company enjoyed a strong quarter, surpassing analysts’ EBITDA estimates.

In the upcoming quarter, analysts predict American Eagle’s revenue to decline by 4.4% year-on-year to $1.09 billion, signaling a shift from the 5.8% growth seen in the same period last year. Adjusted loss per share is estimated to be -$0.22.

Analysts who cover the company have largely maintained their estimates over the past month, indicating that they expect the company to maintain its current trajectory leading up to the earnings report. American Eagle has fallen short of Wall Street’s revenue estimates on five occasions in the past two years.

By comparing American Eagle to its competitors in the apparel and footwear retail sector, we can gain insight into potential performance. Urban Outfitters reported a 10.7% increase in revenue year-on-year, exceeding analysts’ forecasts by 2.5%. Similarly, Boot Barn witnessed a 16.8% growth in revenues but missed estimates by 0.9%. Following these results, Urban Outfitters’ shares rose by 23%, while Boot Barn experienced a 16.5% increase.

Investors in the apparel and footwear retail segment have shown positive sentiment, with share prices increasing by an average of 11.4% over the past month. American Eagle’s stock rose by 4.5% during the same period, and analysts have set an average price target of $12, higher than the current share price of $11.25.

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