Teen clothing retailer American Eagle (AEO) was previously a high flying stock, however increasing competition turned around the company’s fortunes in 2012. The organization, which competes in the extremely swarmed and competitive teenager space, saw its earnings and sales growth tank due to the appalling growth in competition in the teen clothing space. Evidently, American Eagle’s earnings and revenue moved downwards.
Along with American Eagle, other teen apparel retailers have suffered as well. Over the past few years, teen retailers like American Eagle, and Abercombie & Fitch (ANF) have had a tough time, mainly because the logo-centric appeal lost its charm with teen shoppers. However, it looks like American Eagle’s struggle is ending as the company reported a strong quarter with good growth. Continue Reading »