Expect strong digital numbers from AEO
AEO shares are trading +27% YTD, driven higher recently when the company announced
. plans to close hundreds of mostly mall-based stores in the next 2-3 years and focus on growing its Aerie business
Digital Mentions showcase Aerie's strength vs. the company namesake counterpart. While both brands had a successful eCommerce showing over the Holiday season, Aerie digital Purchase Intent mentions increased +57% YoY compared to American Eagle's +33%.
Online sales comprised 45% of AEO's top line revenue in the first 9 months of 2020.
LikeFolio data also suggests an opportunity is brewing up for American Eagle in a segment it has deemed a "
In February, mentions of buying new jeans increased +36% YoY. This is a decently-sized move for a relatively stable trend. It seems the TikTok-ers have spoken: skinny jeans are out, mom jeans are in.
We're listening for digital strength in the Holiday season, and for indications of macro trend drivers on the company's next earnings release after the bell.