American Eagle Outfitters
The same-store sales metric has become a bit of a quick-hit traders game. Missing the consensus estimate can create a sharp move on a company's stock. In American Eagle's case, the Thomson Financial estimate called for same-store sales growth of 14.8%. But for investors whose horizon extends beyond the next few hours, this volatility can be an opportunity.
American Eagle is resonating with a tough-to-reach demographic -- shoppers between the ages of 15 and 25. Other retailers in this category, including Abercrombie & Fitch
Besides, the strong same-store sales growth should be helpful in boosting profits. After all, expenses tend to act more like fixed costs in the retail game. So long as American Eagle's sales momentum continues, the fourth quarter could contain an earnings surprise.
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