Oppenheimer Has Some Thoughts On August Same Store Sales (AEO)
Oppenheimer & Co. has some thoughts on August same-store-sales, which were released yesterday. In the report, it covers American Eagle (NYSE: AEO), which it rates at Outperform, with a $15 price target.
In a note to clients, Oppenheimer writes, "AEO posted a 1% comp vs. (7.0)% ly, in line with both our and consensus estimates. Total net sales rose 3% to $312M vs. $304M in the year-ago period."
It went on to say, "Reiterate Outperform rating and $15 12-18 month price target. While confident in the long-term merchandising turnaround and Roger Markfield's ability to positively impact product, we had been on the sidelines due to concerns that inventory management was not fully reflective of the increased competitive environment and the savvy/cost-conscious consumer. Based on FY2Q10 results, we believe AEO has stabilized and are extremely encouraged by management’s proactive approach to inventories, including changes in planning and allocation, lead times and open-to-buy positioning."
Shares of American Eagle gained 72 cents yesterday, good for a gain of 5.52% to close at $13.76.
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