Finance

American Eagle’s stock ticker symbol is NYSE: AEO. Right now, their stock has been decreasing ever since August. On December 3 is when the stock price dropped from 21.33 dollars to 20.25 dollars and ever since then it has been decreasing. On December 4 it was down 6.75% but it is expected to increase in the near future. The highest that the stock price has ever been was January 15, 2007 at 34.02 dollars. The highest stock price this month was 21.22 dollars and the lowest being 19.22 dollars. The lowest price that the stock has been in the last 5 years was 10.28 dollars. 

An interactive graph: https://www.nasdaq.com/symbol/aeo/interactive-chart

Figure 1. Stock Prices from the last month (Nov.), Prices ranged from 19.89 – 23.85.

            

Figure 2. Stock Prices from the last year (2018), Prices ranged from 15.66 to 28.99.

Figure 3. Stock Prices from the last three years (2016 – 2018), Prices ranged from 10.62

to 28.99

Figure 4. Stock Prices from the last five years (2014 – 2018), Prices ranged from 10.28 to

28.99

One apparel trend that might affect the company’s stock is fast fashion apparel and manufacturing. Fast fashion is designing clothing that is very modestly priced and moving items from the design desk through manufacturing into retail stores around the world in as little as four or even three weeks. Since this is becoming more popular, American Eagle might struggle since they don’t come out with new items as fast as others like H&M, Zara, and ASOS. This could cause the stock to decrease because the company could become less popular. Another trend that might affect their stock would be if Aerie continues to become more popular which would cause the stock to increase.

From the Fiscal year of 2017, they had revenues of approximately 3.8 billion which is a 5% increase from 2016. The American Eagle brand delivered annual comparable sales growth of 2% which is consistent across men’s and women’s apparel. AEO ended the Fiscal period with 414 million in cash and no debt. They increased out quarterly cash dividend by 10%. They also returned over 176 million in the form of share repurchases and dividends in fiscal year 2017. Sales accelerated by 8% in the fourth quarter. They had a revenue growth of 7% in the second half compared to 2% in the first half. Their operating income increased by 3% in the second hald compared to a 27% decline in the first half. Operating and free cash flow continued to expand reaching 294 million and 222 million dollars. Their financial performance placed them above the 75^thpercentile for comparable sales growth.

Their CFO is Robert L. Madore. The CFO’s primary responsibilities includes managing the processes for financial forecasting and budgets and overseeing the preparation of all financial reporting. Some others are providing leadership, direction and management of the finance and accounting team, providing strategic recommendations to the CEO/president and members of the executive management team and managing the processes for financial forecasting and budgets, and overseeing the preparation of all financial reporting.