Why American Eagle Outfitters Stock Fell as Much as 5% Early Today
Shares of basics apparel retailer American Eagle Outfitters (NYSE: AEO) fell as much as 5% on Thursday. The market was down materially in early trading as well, so that was clearly part of the equation. But the bigger picture needs to be considered to put this stock's drop in its full context.
American Eagle Outfitters, like most other apparel retailers, was forced to close the vast majority of its stores in 2020 due to the pandemic. With vaccines starting to gain more traction, and COVID-19 cases falling well below their peak levels, stores have been reopened and consumers have gone back out shopping again. To put a number on that, first-quarter 2021 revenue was up roughly 88% year over year.
And the company gave a decidedly upbeat view -- though perhaps vague ("We remain poised for success, and our brands are stronger than ever.") -- in its earnings release.
Source Fool.com
