BMO Says American Eagle Is 'On Trend'
BMO Capital provided its analysis on American Eagle Outfitters (NYSE: AEO) on Thursday, keeping the firm's conservative outlook steady.
The analysts believe the competitive pricing strategies from other companies, such as Abercrombie & Fitch Co. (NYSE: ANF), caused Eagle to increase its markdown rate in later June.
Referring to the BMO Merchant team, the analysts stated the company is on-trend with natural, organic styles and high volume of "mix & match" products to choose from.
According to BBD (BMO Big Data), the company increased the number of markdown SKUs right after noticing a promotional activity from Abercrombie & Fitch, Express, Inc. (NYSE: EXPR) and Urban Outfitters, Inc. (NASDAQ: URBN) this quarter. "In conjunction with this, we note promotions such as '25–50 percent off shorts' (vs. BOGO 50 percent of select shorts last year) and 'BOGO 50 percent off tees/tanks' (vs. no tees/tanks sale last year)," wrote BMO.
Latest Ratings for AEO
|Apr 2017||B. Riley||Downgrades||Buy||Neutral|
|Mar 2017||Bank of America||Downgrades||Buy||Neutral|
|Jan 2017||Buckingham||Initiates Coverage On||Neutral|
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