|Bid||31.93 x 1400|
|Ask||31.94 x 900|
|Day's Range||31.41 - 32.11|
|52 Week Range||21.02 - 35.68|
|PE Ratio (TTM)||14.93|
|Earnings Date||May 24, 2018|
|Forward Dividend & Yield||0.97 (3.32%)|
|1y Target Est||34.02|
Ahead of American Eagle Outfitters’ (AEO) upcoming fiscal first-quarter results on May 31, most (53.0%) of the 19 analysts covering the stock recommend “hold,” 42.0% recommend “buy,” and 5.0% recommend “sell.” In the quarter, analysts expect American Eagle Outfitters’ top and bottom lines to grow 5.7% and 37.5%, respectively.
As of May 21, American Eagle Outfitters (AEO) stock had risen 21.1% year-to-date. In comparison, Abercrombie & Fitch (ANF) and Urban Outfitters (URBN) had rise 50.4% and 20.6%, respectively, while Gap (GPS) had fallen 6.9%. The S&P 500 had risen 2.2%.
Analysts expect American Eagle Outfitters’ (AEO) EPS (earnings per share) to grow 37.5% to $0.22 in the fiscal first quarter, marking a significant improvement over the 27% decline witnessed in the prior-year quarter. Improved revenue and profits are expected to cushion its bottom line.
Apparel retailer American Eagle Outfitters (AEO) is scheduled to report its fiscal first-quarter earnings on May 31. Wall Street expects the company’s revenue to grow 5.7% to $805.2 million, marking a significant improvement over the 1.7% growth seen in the prior-year quarter.
Can We Expect Another Strong Quarter from Guess? The five analysts that cover Guess (GES) gave the stock a 2.6 on a scale where one is a “strong buy” and five is a “strong sell.” The company has a better rating than apparel peers Gap (GPS) and Abercrombie & Fitch (ANF), which are rated 3.0 and 2.9, respectively. Urban Outfitters (URBN) and American Eagle Outfitters (AEO), however, have a better ranking of 2.5.
After Macy’s Inc (NYSE:M) stock rallied in the wake of its stronger-than-expected first quarter results, multiple analysts were bearish on the shares, saying that Macy’s stock probably can’t advance much further going forward. For example, Citi’s Paul Lejuez wrote that Macy’s first quarter results were “as good as it gets” and kept a “Sell” rating on Macy’s stock. As I reported in a previous column, in June 2017, The Wall Street Journal noted that 9% of Macy’s “customers account for 46% of its annual sales.” Macy’s results indicate that those customers have remained quite loyal and are visiting the retailer’s stores even more often.
Shares of Gap (GPS) have climbed 10% over the last four weeks in a sign that investors might be anticipating strong quarterly financial results from the retailer. Let's take a look to see what they should really expect from Gap in the first quarter.
Hormel Foods (HRL) is scheduled to announce its second-quarter results on May 24 before the market opens. The revenue is expected to grow 9.1% YoY (year-over-year) to $2.4 billion—compared to $2.1 billion in the second quarter of 2017. The EPS (earnings per share) is expected to rise 15.4% to $0.45 from the EPS of $0.39 in the second quarter of 2017.
Macy’s (M) announced its first-quarter results on May 16 before the market opened. The revenue increased 3.8% to $5.5 billion and surpassed the consensus estimates by 3.3%. Macy’s reported a higher EPS (earnings per share) of $0.48—compared to $0.24 in the first quarter of 2017. The EPS surpassed the consensus estimate of $0.37. Multiple brokerage firms also raised the target price for the stock. The stock rose 14.6% last week.
On a recent trip to San Francisco, I received a surprising text: “Hey! See you’re in SF, want to join me for an ice cream crawl at all the best joints?” Obviously, my answer was yes… but why? My friend, a former McKinsey consultant, just moved to the Bay Area to work at Everlane, the…
The new restaurant and retailers will join other tenants like Equinox, Williams-Sonoma, West Elm, Roam Artisan Burgers, Fieldwork Brewing Company and The Lot movie theatre.
Gap (GPS) is covered by 25 Wall Street analysts, who jointly rate the stock a 3 on a scale of 1 for “strong buy” to 5 for “sell.” The company is among the lower-rated apparel retailers. In comparison, Guess (GES), Urban Outfitters (URBN), and American Eagle Outfitters (AEO) are rated 2.6, 2.5, and 2.4, respectively.
Investors responded positively, and Gap stock surged a massive 52%. Guess (GES) and American Eagle Outfitters (AEO) have soared 50% and 20%, respectively, year-to-date, and L Brands (LB) has fallen 43%. Gap has a strong balance sheet and healthy free cash flow position.
Gap (GPS) has not only shown improvement in sales comps, but its margins have also expanded consistently. Its gross margin has expanded over the last six quarters due to ongoing cost-cutting initiatives, changes in pricing strategy, and the disposal of non-profitable businesses.
For some time, the North American market has been a roller coaster ride for apparel retailers. Companies have been battered by rising competition from the online channel, an increasing presence of fast fashion brands such as Forever 21 and H&M, and numerous bankruptcy filings from industry peers. Strategic initiatives such as digital expansion, timely responsiveness to changing customer preferences, and a focus on more profitable brands have boosted Gap’s comps. The company has delivered five consecutive quarters of positive comps after witnessing negative comps for nine consecutive quarters.
Where Is Urban Outfitters stock heading? As of May 16, Urban Outfitters (URBN) stock is up 20.7% on a YTD (year-to-date) basis. In comparison, American Eagle (AEO) and Abercrombie & Fitch (ANF) are up 19.9% and 55.6%, respectively.
The majority of the analysts covering Urban Outfitters (URBN) stock have maintained a “hold” rating ahead of its upcoming fiscal Q1 2019 results, which the company plans to release on May 22. Over the past 30 days, the target price was revised just once. On April 16, JPMorgan revised its target price for Urban Outfitters stock to $46.00 from the $43.00 projected earlier and retained the “overweight” rating.
Gap Inc. will provide a live audio webcast of the company’s Annual Meeting of Shareholders, beginning at 10:00 a.m. Pacific Time on May 22, 2018. To register for the webcast on May 22, please visit www.gapinc.com .
Today, Gap Inc. and the United Nations Foundation announced that, for the third consecutive year, they will partner during Pride Month to raise awareness and funds for UN Free & Equal, a global campaign of the UN Human Rights Office to promote equal rights and fair treatment for lesbian, gay, bisexual, transgender, and intersex (LGBTI) people globally. This effort builds on Gap Inc.'s commitment to the UN Human Rights Office’s Standards of Conduct for Business on Tackling Discrimination against LGBTI People unveiled last year. The partnership will include a portion of proceeds from sales of special Gap and Banana Republic t-shirts and eGift Cards across Gap Inc. brands to benefit UN Free & Equal.
Gap's (GPS) solid focus on its growth strategy, enhancing product quality and responsiveness to changing consumer trends is likely to prove conducive to the company in first-quarter fiscal 2018.
After spending more than 30 years in leadership roles at Procter & Gamble, Kraft Foods Group, Dick’s Sporting Goods and Deloitte, Teri List-Stoll decided to head into early retirement. A couple months later, Gap Inc. CEO Art Peck came knocking.
Thanks to the growing global economy, demand for crude oil has surged in the wake of lower supplies. The end result is that gas prices have gone through the roof in a short amount of time. Currently, gas prices are averaging $2.89 per gallon according to auto club AAA.
Here’s a quick wrap up of other headlines making news today.