American Eagle: Technical Picture Improving Considerably (NYSE:AEO)

It’s been a rough first half of 2020 for the Retail Sector (XRT), but a few names have emerged from the rubble relatively unscathed, with American Eagle (AEO) of them. The company released its Q2 results last week and reported sales down only 15% year-over-year, which is impressive given the circumstances and continued strength in Aerie, which saw revenue grow 32% from Q2 2019. Based on this, the company plans to open 25 new Aerie stores this year and also plans to make a push into the active-wear market with its OFFLINE brand. Given the improving technical picture from the accumulation we’ve seen recently and the attractive valuation, I would expect sharp pullbacks to provide low-risk buying opportunities.


American Eagle released its Q2 results last week and reported quarterly revenues of $884 million, down 15% year-over-year. While these are certainly not pretty headline numbers,

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