American Eagle: The Jeans of Valhalla (earnings 03/02/2022)

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American Eagle earnings is today afterhours and I believe they will be good. Reasoning is everyone whos between the age of 14-24 100% gets their jeans from AE because they legit are and have the best stuff for all sizes and everyone.

  • The American Eagle brand and Aerie brand are demonstrating strong growth. There could be less pressure on Aerie to carry the company.
  • Operating income margins are improving due to less promotional activity.
  • The acquisition of Quiet Logistics could deliver more efficient gains pursuant to fulfillment.
  • AEO is poised to win in the retail space, but I believe the stock is fairly valued. Hold AEO into earnings.

Expert analysis expects AEs revenue of 1.52 billion and an EPS of .35.
the revenue estimate implies a double digit percentage gain year/year.
For the quarter ended October 2021, the company generated revenue of nearly $1.3 billion, up 23% Y/Y.

With prior retail earnings that were good I would expect American Eagles to be good as well. I think the company is fairly valued however with good earnings it could lead to a slight pop.

[size=5]Disclaimer; this is not Financial Advise and I am most certainly not a Financial Advisor[/size]

American Eagle Shorts

shorts make up 23% of the float and are roughly 30.4 million shares. with a good earnings and some retail bulls on it, a pop could do some damage and maybe run the price up some more.

[size=7]ONCE AGAIN[/size]
[size=5]Disclaimer; this is not Financial Advise and I am most certainly not a Financial Advisor[/size]

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Count me in milly

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It’s called American Eagle so it gives me a freedom boner.
I’ll buy a call.

Bought a 3/11/22 21.5call @ 1.10

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I grabbed a 24 FD - for .26

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Grabbed a 22.5c FD for 0.60

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godspeed :pepe pray: x3

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I would be careful. Urban Outfitters and Abercrombie & Fitch reported earnings on 3/1 and 3/2. They both missed but URBN went up while ANF went down.

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Looks like ANF had crappy guidance… it’s more about outlook these days

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Locked and loaded baby

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Thanks for starting this thread Milly! Looks like it may not have gone our way but it was a well-intentioned gamble.

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I appreciate this thread @T_Milly - I would have probably never looked at this stock - and it is under $50 a share with weeklies, which is right up my lane -

Going to keep an eye on it the next couple weeks and might look at it as a wheel option.

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Thanks for making this thread I was actually able to close small profits on a small position because of it. You made a way better DD than I would have and I’m happy to learn from it!

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Mission failed, well get em next time

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apologies if u played this and lost money, I am sorry.

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No worries at all. I played one contract and only did it because of my RSX gains from this week. Chalking it up to a good learning experience on a small earnings position, which I really need to learn more about anyways. Don’t lose sleep over this!

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I played the run up based off your DD here (promised myself no more holding through earnings itself) and made enough to pay for a pizza.

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Well knew the risks - you don’t need to feel responsible - it was a well DD - ER’s are always a gamble.
Not like we would gave you a cut if all made money on it :wink: