Wednesday, August 03, 2005

American Eagle Guides Higher

After the bell (AEOS) guided higher and reported that it will have another great quarter. Same store sales rose 17.1% compared to estimates of 15%. Total sales for July were up 25%, $175 million compared to $139.6 million a year ago. The stock traded down in the afterhours. I will be looking to add to my position tomorrow morning if it is still under $31.

As a side note, I visited an American Eagle store for the first time today and was blown away by the business they were doing. Abercrombie (ANF) & Hollister also seemed very busy for a weekday afternoon. Some of the losers look to be Levi's, Tommy Hilfiger (TOM), and Ralph Lauren (RL). Just by judging on traffic into each store.

Also the quality of clothing at AEOS seemed to be superior to that of Levi's/Dockers and Pac Sun (PSUN).


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