What Can Move American Eagle’s Stock Down In The Next Couple Of Years?

+15.13%
Upside
22.34
Market
25.72
Trefis
AEO: American Eagle Outfitters logo
AEO
American Eagle Outfitters

  • The following scenario can bring about more than 5% downside to our price estimate for American Eagle Outfitters:
    • The retailer’s mainline brand revenue per square feet (excluding online sales) increases at a compound annual growth rate of 0.2% instead of our current forecast of 1.5% through to 2022
    • This can happen if the retailers fails to survive the relentless competition from fast fashion players such as Zara, Forever 21 and H&M, which can subsequently lead to a decline in store traffic and average prices

AEO downside scenario

AEO downside scenario part two

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Have more questions about American Eagle Outfitters? See the links below:

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for American Eagle Outfitters
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