Soaring ‘Eagle’

While other retailers’ comparable-store sales numbers have suffered some in recent months, American Eagle’s have stayed strong and should continue to do so as back-to-school shopping continues in force this month. Analysts who had the opportunity to preview the company’s back-to-school merchandise gave it the thumbs up and predicted its future success based on on-trend product selection.

“American Eagle [is] positioned to take [the] share for BTS,” said Todd Slater, a senior retail analyst for Lazard Capital Markets, in a report. “The key merchandising takeaways…are an assortment featuring more ‘wear now’ products…more feminine looks, and a robust denim offering that is marketed more intelligently. For instance, this year’s denim includes more premium rinses and darker tones, and the marketing campaign (a “fit challenge” featuring a $10 August/September bounce back) should drive incremental sales and higher conversion rates relative to last year’s promotion.”