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

• 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

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

• What Is American Eagle Outfitters’ Revenue & Net Income Breakdown In Terms Of Different Operating Segments?
• How Has American Eagle Outfitters’ Revenue Composition Changed In The Last Five Years?
• What’s American Eagle Outfitters’ Fundamental Value Based On Expected 2016 Results?
• Where Will American Eagle Outfitters’ Revenues Come From In The Next Five Years?

Notes:

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