American Eagle (AEO) is Soaring Higher

In the earnings preview LikeFolio put out ahead of American Eagle’s (AEO) 20Q4 report, we noted continued strength from the Aerie brand as well as robust digital demand growth and a brewing opportunity in the Jeans segment.

This brief write-up appears prescient now – AEO went on to report: +25% YoY growth for the Aerie brand (a 25th consecutive quarter with double-digit growth), +35% YoY growth in digital channel revenue, and noted that Jeans were “a stand-out in the quarter.”

American Eagle’s outperformance vs. other retail, mixed with a bit of re-opening hype, has helped shares gain nearly +80% YTD.

Based on the recent uptrend in consumer Demand, the outlook is favorable for AEO’s 21Q1 report later this month.