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...

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