Vince Martin
Long/short equity, value, gambling

American Eagle's Crash Landing

With real questions about whether retailers as a whole can maintain [their recent] bull run -- and serious near-term headwinds in the teen retail space -- American Eagle is in a precarious position right now. And it seems likely that things will get worse before they get better.

So I wrote earlier this month, after American Eagle Outfitters (NYSE:AEO) pre-announced disappointing second quarter results, with earnings per share guided down from 19-21 cents per share to 10 cents per share. But neither I, nor likely anyone else, anticipated just how quickly more bad news would come, and how worrisome that news would be.

On Wednesday, the company announced official results for the quarter, with earnings coming in...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details