Wednesday, August 21, 2013

Investopedia: American Eagle Hammered As Conditions Worsen

To me, the biggest question coming out of American Eagle's (NYSE:AEO) poor second quarter and weak guidance is whether or not there's an overall traffic problem at the malls. If traffic is down across the board (and there's some evidence that that may be the case), this is just another one of those bad stretches that every apparel retailer has to deal with now and then. If the traffic patterns are more inconsistent, though, and some really outperform, it sets up a whole new round of questions about merchandising, brand value, and long-term margins.

Please read more here:
http://www.investopedia.com/stock-analysis/082113/american-eagle-hammered-conditions-worsen-aeo-aro-urbn-anf.aspx

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