Thursday, May 23, 2013

Investopedia: After Some Preening, American Eagle Could Fly Again

A retailer's work is never done. Even if a company has the store footprint it needs and has its brand identity/merchandising dialed in, there's often the need to refresh the stores, upgrade logistics systems, and so on. While all of that goes on, there's still the matter of weather, fashion, and competition-related volatility in comp store growth to consider.

American Eagle (NYSE:AEO) looks like it has a little more work to do before really getting going again. The company is in better shape than just a couple of years ago (when the stock traded in the low teens and “Can AEO ever be relevant again?” stories were more prevalent), but sizable cash investments and some sluggishness in sales could leave the stocky chopping around a bit before resuming a more positive trajectory.

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