Time will tell if the current ugliness in teen-oriented retail is tied to economic issues or a more fundamental shift towards value-oriented and fast-fashion retailers. As one of the established leaders of the teen retailer space, American Eagle Outfitters (NYSE:AEO) has a lot to lose if its the latter, and the company's sales are suffering amidst a highly promotional environment.
With the surprising removal of its CEO about a month ago, American Eagle has to find a new leader at a challenging time in the sector. The company's brand identity, strong store footprint, and clean balance sheet work in its favor, but there is an undeniable risk that the company will not evolve with the times. My expectations...
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