American Eagle Outfitters, Inc.


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Disclosure Chart

Initiated on 10/22/2008 with a "Buy" rating and a $16.00 Price Target

Ratings Distribution as of August 22, 2017
Rating Number of Companies Percent of Total
Buy 146 74.9%
Neutral 48 24.6%
Sell 1 0.5%
Total 195 100%
% with Investment Banking Relationships
Rating Number of Companies Percent of Total
Buy 23 88.5%
Neutral 3 11.5%
Sell 0 0.0%
Total 26 100%

Explanation of B. Riley & Co. LLC's Rating System

  • Buy: We generally expect “Buy” rated stocks to have an above-average risk-adjusted total return over the next 12 months. We recommend that investors buy the securities at the current valuation.
  • Neutral: We generally believe “Neutral” rated stocks will have an average risk-adjusted total return over the next 12 months.
  • Sell: We generally expect “Sell” rated stocks to have a below-average risk-adjusted total return over the next 12 months. We recommend that investors reduce their positions until the valuation or fundamentals become more compelling.

Risks and Considerations

  • Further Potential Risks - See the Company's SEC filings, particularly its 10-K filing, for a discussion of further potential risks.

Additional Risks and Considerations


    • General Macroeconmic Risk: There is a considerable macroeconomic headwind at present and retailers such as AEO are experiencing external pressure.
    • General Industry Risk: The company is subject to the inherent volatility of apparel retailing (including potential merchandise content issues) and a possibility exists that the company could miss our estimates, the consensus or its own guidance.
    • Expansion Risk: AEO’s continued growth and success depends in part on opening, operating, and expanding stores in a timely and profitable manner.  
    • Brand Development Risk: New brands such as 77kids, MARTIN & OSA and aerie require careful management, substantial investment, and are subject to risks including customer acceptance, competition, differentiation, and the ability to attract qualified personnel.  
    • Competition: The apparel industry is highly competitive and AEO’s close rivals ARO and ANF are constantly competing for market share.   
    • International Sourcing Strategy: AEO purchases a significant amount of merchandise through a single foreign buying agent and does not maintain exclusive commitments to purchase from any vendor. Any disruption of imports could have a negative effect on operations.
    • Auction Rate Security Risk: Negative conditions in the ARS market could negatively affect AEO’s long-term investment balance.  That said, risk is likely to be temporary and many of the securities held are backed by the U.S. government.