How Good Has American Eagle Outfitters (AEO) Stock Actually Been?

• American Eagle has gained publicity precocious for immoderate personage collaborations.

• It's feeling unit successful sales, but it's doing a bully occupation of managing expenses.

• American Eagle banal trades astatine a tenable price.

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American Eagle Outfitters (NYSE: AEO) is 1 of the astir fashionable covering brands astir these days. With galore of its products aimed astatine the teen and young big market, its broader ngo is to thin into youthful trends that mightiness besides beryllium fashionable with the colonisation astatine large.

It has reported a mixed show implicit the years, and its banal has much oregon little reflected that. Let's instrumentality a look astatine what's happening present and however the banal has rewarded shareholders.

2025 has been a comparatively pugnacious clip for galore user discretionary companies. Simply put, there's not a full batch of discretionary income for overmuch of the U.S. colonisation arsenic ostentation is erstwhile again rising. Shoppers of precocious look to beryllium focusing connected essentials and cheaper items. American Eagle considers its products to beryllium low-priced, and they are erstwhile compared with luxury brands. But an other brace of jeans is inactive extra.

In the 2025 fiscal 2nd 4th (ended Aug. 2), income and comparable income (comps) some decreased 1% from past year. Even Aerie, the company's women's intimate apparel and loungewear brand, which has been a beardown maturation driver, is feeling the pressure, and Aerie comps were down 3%.

The institution has been cautious astir costs successful this climate, and gross borderline expanded 0.3 percent points to 38.9%, portion operating borderline expanded 0.2 percent points to 8%.

American Eagle gained publicity implicit the past fewer months for what ended up being a arguable selling run featuring histrion Sydney Sweeney, arsenic good arsenic for a collaboration with shot prima and Taylor Swift's fiancé, Travis Kelce. These selling moves did extremity up having a affirmative interaction connected sales.

American Eagle is 1 of the astir fashionable covering brands successful the U.S., but its banal hasn't been rather arsenic popular, particularly compared to the S&P 500.

Data source: Ycharts. Note: Data is arsenic of Nov. 25.

These are full returns, which see dividends (American Eagle's dividend yields 2.7% astatine the existent price).

American Eagle banal trades astatine 18 times trailing-12-month earnings, which is astir its mean implicit the past fewer years and looks reasonable. American Eagle isn't a maturation stock, and investors should recognize that going in. But if you're looking for a worth banal with an above-average dividend yield, American Eagle could beryllium a invaluable banal to clasp implicit a agelong play of time.