Big cultural changes usually bring big fashion changes. The end of World War I ushered in the slinky silhouettes of the 1920s. The aftermath of World War II saw a craze for full skirts. And today, as the Covid-19 pandemic in the U.S. looks to be nearing an end, style shifts are in the air again. That’s great news for U.S. fashion retailers.

As Americans slowly return to offices and schools, many are looking to refresh their wardrobes, from the top all the way down to their feet. A recent Jefferies survey found that 23% of U.S. respondents named clothing and accessories as a priority for discretionary spending as the environment normalizes, second only to returning to ba and restaurants— and, thanks to government stimulus checks, they have the money f it. A new wardrobe may mean different things to different consumers, but the desire for freshness will drive sales for a wide swath of retail, and will serve as a springboard fo the strongest brands to keep growing,
even after the frenzy fades. Among the likely prime beneficiaries: Nike (ticker: NKE), TJX Cos. (TJX), trendy online-only retailer Revolve Group (RVLV), and American Eagle Outfitters (AEO).

While retail stocks have come on strong during the past year—the exchange-traded fund (IBUY) has returned more than 130% over the past 12 months—new trends measure new spending. Which suggests suggests that the rally in apparel stocks will continue. “These cycles happen,” says Ed Yruma, managing director at KeyBanc Capital Markets. “And there’s any moment in time that’s well situated for a fashion shift, it’s now, after we’ve all been wearing the same clothes for 13 months.”

As with most everything else, just because the pandemic may be coming to an end doesn’t mean that life will return to the way it was before Covid-19. People have gotten used to working in sweats, yoga pants, and T-shirts, while discarding the suits and pencil skirts they wore in precoronavirus times. No, people probably won’t go to the office in their workout clothes. But expect office staples with technical fabrics that mimic the advantages of workout gear, while athleisure-dominant streetwear and denim continue to rake in huge sales.  “Comfort is here to stay; once you’ve tasted comfort, it’s hard to give it back. And as health and wellness become ever more important, athleisure goes hand in hand with that,” says BMO Capital Markets analyst Simeon Siegel. “Everyday attire has change and it is likely changed for a long time.”

Even when people dress up, they don’t want to compromise on comfort, says Nordstrom fashion director Marie Ivanoff-Smith. Brands have tried to incorporate elastic waistbands, looser legs, and soft materials “without sacrificing fashion and newness,” she says. At the same time, designers are using “happy, emotional prints” and applying them to flowing dresses. “Denim shorts and ’90s-inspired wide-leg jeans are selling o quickly,” Ivanoff-Smith says. Denim is particularly popular. Some 58% of respondents to a recent J.P. Morgan consumer survey said they planned to buy denim post pandemic, allowing the category to climb to the top spot, up from fifth place a year ago.

American Eagle’s strong position in denim means that it should benefit from consume broadening beyond the skinny styles that have dominated for years, looking into more  relaxed fits and wider-leg styles. The company earned just a penny a share in 2020, a figure that’s set to soar to $1.77 this calendar year and $2.14 in 2022, even as it trade at less than 19 times forward earnings—cheaper than fellow denim player Levi Straus & Co. (LEVI), which trades at 24 times, and mall stalwarts such as Abercrombie & Fit (ANF) and Gap (GPS), which also trade at 24 times.  “American Eagle is gaining share and achieving higher margins as consumers restock closets at AE and [its sub-brand] Aerie,” notes Cowen analyst Oliver Chen, who raise his target price on the shares to $40 last month, up 10% from current levels.

Moreover, the company has done an exceptional job partnering with influencers on social media to build up the brand, says Gabriella Santaniello, founder of A Line Partners, an independent retail research firm. This comes at a time when new denim styles have “consumers buying more bottoms than usual. Then you have to buy the t to go with it, and that changes your handbag and footwear, too,” she says.

Speaking of footwear, Jessica Kim, a New York–based architect and project manager works in an office-casual environment but has been refreshing her wardrobe with item that she can  wear to work, as well as for going out to happy hours and dinners with friends when those events return. She says the vast majority of her bottoms are high waisted, and recently she has been buying pointy flats—like those from Dior J’adore and Valentino—that work for both occasions but are much more comfortable for walk than heels. Demand for dress footwear was “declining at a steady pace prior to the pandemic,” according to retail-data firm NPD Group: Sales fell 50% in 2020 compared with 2019, but that was on top of a 10% decline in 2018. And while special occasions like weddings eventually will resume, many forecasters don’t expect the market for dressier shoes to recover to previous levels anytime soon.

That’s good news for Nike. The stock has dropped 7% in 2021, hurt in large part by diplomatic tensions between the West and China, stemming from the latter’s alleged humanrights abuses. Sales are expected to grow 14%, to $46.5 billion, this calendar year, while earnings are set to jump 45%, to $3.64. The stock trades at 33.5 times forward earnings, above its five-year average of 28.2 times. But its PEG ratio—a measure of valuation to expected growth—has fallen to 1.3 times, below its five-year average of two, suggesting that the higher valuation doesn’t compensate for the faster growth. Baird analyst Jonathan Komp turned bullish on Nike for the first time in more than two years following the recent selloff, arguing that the China headwinds are a distraction from the giant’s product innovation and digital growth, which “have strengthened Nike near- and long-term earnings potential.” His middle-of-the-pack target price of $150, 14% above recent levels, would need Nike to trade at 34 times forward earnings, just marginally higher than its multiple today.

Even teens are getting into the act. A Piper Sandler survey found that wealthier young consumers are earmarking 29% of their wallets for clothing, the highest level in eight years. That’s encouraging for Revolve, an e-commerce fashion powerhouse geared toward Gen Z and millennials, says Piper Sandler analyst Erinn Murphy. The retailer caught headlines for its tongue-in-cheek category of vaccine-ready bare-armed tops, but it remains a “preferred website among upper-income females,” says Murphy, who recently raised her target price on the stock to $53. Revolve’s earnings are expected to dip 7.6%, to 73 cents a share, in 2021, in part on further business reinvestment and marketing spending. But the consensus expects them to jump 38% next year, to $1.01. At 62 times forward earnings, the stock isn’t cheap, but it could come down as analysts ramp up their estimates in the face of an improving outlook. Catering to a younger, stylish crowd means that “Revolve is the tip of the spear,” says KeyBanc’s Yruma. “This is the one retailer that shows the change trend first.” Yruma has a $58 price target on the stock, 13% higher than current levels After so much time locked inside, shoppers are going to enjoy the treasure hunt that comes from shopping at off-price retailers
like TJX Cos. It’s the kind of place that specializes in the “I don’t know what I want, but I’ll know it when I see it” experience that could attract new shoppers following the pandemic.

After so much time locked inside, shoppers are going to enjoy the treasure hunt that comes from shopping at off-price retailers like TJX Cos. It’s the kind of place that specializes in the “I don’t know what I want, but I’ll know it when I see it” experience that could attract new shoppers following the pandemic. At 29 times forward earnings, TJX Cos. isn’t just the cheapest of the off-price retailers it’s also among those expected to boost profits the fastest. Earnings are forecast to soar 365% in 2021, to $2.16 a share, and then rise 33%, to $2.88, in 2022. As the on major international player of the group, it would also benefit if Europe starts to ease Covid-19 restrictions later this year. BMO’s Siegel, who raised his price target on TJX $80 recently, 13% above recent levels, expects “TJX to become increasingly important to both shoppers and vendors, driving meaningful long-term share opportunity.” One thing that investors should keep in mind: It won’t be easy to cater to changing tastes. “Last year, all you had to do was tie-dye sweatpants and sweatshirts, and they would sell,” says A Line Partners’ Santaniello. “Now, [retailers] will have to understand what’s on trend.” Knowing how to spot those shifts is something that investors will appreciate, too.

In 2020, AEO committed $5 million to the AEO REAL Change Scholarship for Social Justice – an educational fund to support associates who are actively driving anti-racism, equality and social justice initiatives in their communities.

Today, we are thrilled to announce the names of the 15 associates from across the U.S. who are demonstrating the power of their actions and voices to make REAL change! Here are the 2021 Real Change Scholarship Recipients:

Amarilys is a Brand Ambassador from Warwick Mall in Warwick, Rhode Island. She is pursuing a double major in Marketing and Spanish at Rhode Island College. Her social justice work includes volunteering and acting as Vice President of Unidos, an organization on her college campus that brings together minority communities and works to bring education events on social justice to campus.

Kennedy is a Brand Ambassador at Aerie in Florence Mall in Florence, Kentucky, currently enrolled as an Electronic Media and Broadcasting major at Northern Kentucky University. Kennedy participates in programming and works for Voices Amplified, an organization that shares stories of women who are making change in their communities.

Gabriel is a Sales Associate at the Florida Keys Outlet in Florida City, Florida who is in his last year of high school and currently applying to universities across the country. Gabriel has been volunteering with Achieve Miami for the last several years, including participating in virtual programming during the COVID-19 pandemic. He helped found the Sexual Health Awareness Club at his school, which advocates for awareness on sexual health and tackles topics such as sexual assault, STI’s, LGBTQ+ related topics, and birth control.

Emily is a Brand Ambassador at Carriage Crossing in Collierville, Tennessee who is working on her Bachelor’s Degree in Criminal Justice at the University of Memphis. She had an internship at the Memphis Bar Association and worked in the Juvenile Court in Downtown Memphis. She has taken many classes and internships related to law and social services and has seen firsthand how the criminal justice system operates – and how reform is needed to bring social justice to criminal proceedings.

Chamara is a Sales Associate in Florida currently enrolled at Eckerd College in Saint Petersburg, with a Major in Film and a Minor in Psychology. She is active in the African American Society Club and Diversity club at her school, and this year, she is the Director of Cultural events. In that role, she is responsible for creating events that promote inclusiveness and social justice. As a filmmaker, Chamara is focused on diversity and representation – she wants to make sure Black stories are seen and heard.

Leticia is a Brand Ambassador at Colorado Mills in Lakewood, Colorado, who is planning to enroll in Colorado State University and pursue Major in Business and an Interdisciplinary Leadership Studies Minor.  For Leticia, education equity is one of the cornerstones of our society. She is part of Student Voice and Leadership and acts as a representative for the groups’ policies and suggestions for school leadership. She is personally spearheading the effort to implement a Student Bill of Rights that will help provide appropriate support, representation and resources for all students.

Brandon is a Brand Ambassador at Jersey Gardens in Elizabeth, NJ. He is a senior in high school who is looking to pursue a Bachelor’s in Political Science. He has grown up learning about hard work from his single mother. In 2020, he partnered with DoSomething to bring awareness to political advocacy and voting for the 2020 election. In the fall of 2020, he was a panelist for the College Board Diaspora project, which is designed to amplify the history, culture and experiences of Black people all over the world. Brandon believes that education, resources, and equal opportunities are essential to ensure a bright future.

Olivia is a Brand Ambassador at Bellevue Square in Seattle, Washington who is looking to pursue a degree in English or Political Science. Olivia has done work with the Multicultural Student Union and as a senior during the most recent local election cycle, she joined the Emerald Youth Organizing Collective to push for youth engagement and progressive, intersectional policy in the Washington state legislature.

Reham is a Sales Associate at Cambridgeside Galleria in Cambridge, Massachusetts, currently enrolled at Simmons University in Boston, studying Political Science/Criminal Justice and Philosophy. She has always had to consider her dual identities as a Muslim Black woman – and when she joined the Black Student Union in high school, the group gave her the freedom to explore her identity and shape her social justice efforts. She continues to work as an activist for change, has interned for organizations run for and by the Black community, and explored the connections between race and politics.

Angelyvette is a Brand Ambassador at Viewmont Mall in Scranton, Pennsylvania, currently a student at Pennsylvania College of Technology studying Radiology. When she arrived on campus as a freshman, she was disappointed by the lack of diversity at her college. To address these issues, Angelyvette met with the Diversity Office and formed the One World Club with the goal of creating a community that every individual has a place to be their true, authentic selves.

Alyssa is a Brand Ambassador at the Avenue at Peachtree in Peachtree, Georgia, studying Biomedical Engineering at the University of West Georgia. Growing up as a person of color in a small, affluent, and majority-white city, she has learned first-hand about racism and the importance of social justice. She has used her social media platform to spread awareness and has focused her academic efforts on exploring topics of race and equality.

Alicia is a Stock Associate at the Exton Square Aerie in Exton, Pennsylvania, and High School Senior who would like to pursue Political Science for her Bachelor’s Degree. In 2020 she was inspired to help register and encourage her community to vote. She volunteered phone banking, text banking and worked with her school to hold a voter registration drive for eligible students. More than 65% of her classmates made their voice heard in the election – and Alicia is looking forward to pursuing new ways to drive civic engagement among her community.

Tiffany is a Brand Ambassador at the Fashion Outlet in Chicago, Illinois who has been shaped by her parents’ path as immigrants to the United States. She joined Students United for Change to encourage civic engagement within her community and helped to found Mujeres Unidas (Women United.) Last year, members of the group spoke at a gender and equity conference at a neighboring high school to educate on privilege and ways to bring change. She is passionate about immigration and immigrant rights and hopes to further her education in pursuit of change.

Jazmine has worked as a Brand Ambassador, Lead Cashier and Sales Lead at the Wyoming Valley Mall in Wilks Barre, Pennsylvania. She is currently enrolled at the University of Denver, with a double major in International Studies and Creative Writing. Over the last several years, she has attended leadership and academic programs centered around social justice, including Yale Young Global Scholars. In 2020, she created a list of resources for her Store Team to help educate and discuss social justice issues and partnered with Store Leadership to make sure that every associate received training from AEO Academy on social justice issues.

Skyler is a Sales Associate at the Annapolis Valley Mall in Annapolis, Maryland, and a high school senior from Baltimore City who wants to pursue Forensic Science and Biochemistry. From a young age, Skyler has been passionate about LGBTQIA+ rights. In a previous job, one of her colleagues, who was transgender, was being harassed. Skyler went to management and helped to start company-wide training for LGBTQIA+ initiates. She continues to attend marches and protests and looks for ways to lend her voice to those in need.

The winners are in. 

American Eagle Outfitters has revealed the first 15 Real Change Scholarship for Social Justice recipients. They include students interested in human rights, film, politics, LGBTQ issues, Asian American rights and more.

“I’m thrilled to announce our inaugural 15 recipients of the AEO Real Change Scholarship for Social Justice,” said Jay Schottenstein, executive chairman of the board and chief executive officer of American Eagle Outfitters. “The program was created to build stronger, more diverse communities and support educational opportunities for our associates — who are the next generation of leaders. We are inspired by the passion, powerful action and real impact our awardees have demonstrated through their efforts to drive anti-racism and equality initiatives in the communities where they live and work. We are extremely proud to have such purpose-driven associates as part of our AEO family and look forward to supporting their educational pursuits.”

American Eagle Outfitters launched the scholarship in the fall in an effort to fund college expenses for employees who have a track record of promoting social justice issues within their communities.

The $5 million endowment will last at least 10 years, with company associates from underrepresented communities who are actively driving anti-racism, equality and social justice initiatives selected each year.

The inaugural cohort will each receive $10,000, which can be used to pay for tuition, housing and books, in addition to a mentor, someone at American Eagle Outfitters who can assist with career development and navigating the college experience.

American Eagle Outfitters, which includes the American Eagle, Aerie, Offline by Aerie, Todd Snyder and Unsubscribed brands, employs nearly 40,000 associates globally. About 70 percent of those employees are in Generation Z, or under the age of 25. But the scholarship is open to all full- and part-time associates, including in-store, corporate and distribution center employees, who are pursuing an undergraduate degree. Applicants must submit a personal statement outlining how they’re taking a stand against social justice issues — such as racism, hatred, bigotry, discrimination or inequality — demonstrate financial need and maintain a 3.0 grade point average, among other criteria.

American Eagle is thrilled to announce the opening of its 47^th store in Monterey, Mexico at Plaza Cumbres Mall.

This store is the first small format store in the region. While compact, the store is packed with AE’s most loved products in only 1,900 square feet of space (compare to the typical AE store that covers nearly 6,000 square feet!) This new real estate concept allows AE to further expand the brand into various cities, maximizing profitability and brand visibility!

The novel store design features unique elements not used in our standard fleet of stores and is built around our core product – jeans! At the entrance, customers are greeted with a lightbox of hanging jeans. This design feature highlights both men’s and women’s fits and is a quick way for customers to get an overview of the different styles available. The traditional center lead has been replaced with a co-ed runway highlighting the best-selling denim styles and the revamped fitting room features a sitting area with a large denim display for customers to grab new sizes or styles as needed.

When it comes to product, the store houses AE’s most loved items! Even with the smaller footprint, the store features a full denim assortment. Customers will also be able to shop favorite top silhouettes including men’s and women’s graphic tees, as well as a selection of polos, fleece, sweaters and seasonal styles.

Congratulations to the Mexico team for a successful opening!

• American Eagle Outfitters CEO Jay Schottenstein said he expects mall traffic to rebound and the next decade to be a boon for business as consumers emerge from the coronavirus pandemic with confidence.
• “We’re very excited, you know, about the future of the mall … and we think that when things get better and the pandemic goes away … we can be looking at the ‘Roaring 20s,’” he said in a “Mad Money” interview.
• “The mall is not dead. The mall is still alive,” Schottenstein said.

By Tyler Clifford | Link to article

American Eagle Outfitters CEO Jay Schottenstein said Thursday that the U.S. shopping mall “is not dead” and that the decade is shaping up to be a boon for business.

The apparel retailer anticipates extending its double-digit comparable sales growth streak to 27 quarters and retaining its position as a leader in denim, Schottenstein said in a CNBC appearance.

“We’re very excited, you know, about the future of the mall,” he said in a conversation with Jim Cramer on “Mad Money,” “and we think that when things get better and the pandemic goes away … we can be looking at the ‘Roaring 20s’.”

Schottenstein is one of many hopeful figureheads who predict the current decade will mirror the growth of a century ago. Consumer spending, spurred in part by the latest round of stimulus checks, surged nearly 10% in March, the latest positive sign of economic expansion and growing confidence.

“The sales we’re doing, like this quarter, … all the stores are comping and we’re doing it at a 50% capacity,” Schottenstein said.

The comments come one day after the Pittsburgh-based retailer said business for the fiscal first quarter is exceeding projections, driven by government economic stimulus and pent-up demand, especially for jeans. Shares of American Eagle Outfitters hit new highs, continuing a rally that kicked off in late March.

The company’s stock has climbed 29% since March 24.

American Eagle Outfitters is benefiting from consumers releasing their almost year’s worth of pent-up demand.

Shoppers are returning to the retailer — which counts American Eagle, Aerie, Offline by Aerie, Todd Snyder and Unsubscribed in its portfolio of brands — in increased numbers thanks to vaccine rollouts, stimulus checks, tax returns, warmer weather and relaxed COVID-19 restrictions. American Eagle Outfitters said Wednesday that it is now expecting current-quarter revenues to top $1 billion, a mid-teens increase, compared with 2019’s revenues, or the same period pre-pandemic.

“I do believe it is the perfect storm,” Jennifer Foyle, chief creative officer of American Eagle Outfitters, as well as Aerie global brand president, told WWD.

“The pull-back on promotions is definitely benefiting these results,” she added. “We learned that through the entire year of COVID-19, really thinking of our inventory positioning and how we want to maximize our [average unit retail] and sell less units. The most important thing we’re focused on is quality. The quality of our product; the quality of our sales; the quality of our service. And in doing so, I think we’re warranting a price that the customer still feels is a fair value. But they’re definitely seeing the difference in our quality.”

The company now expects operating income of about $120 million, compared with $48 million in 2019’s pre-pandemic first quarter, thanks to strength in the Aerie and Offline by Aerie brands, as well as American Eagle’s denim business.

“It’s not only the tailwinds [created by the pandemic], but we’ve got these brands that are in front of us that, I think, are well-positioned for growth,” Foyle said. “Strategic growth, really thinking about the bottom line.”

Jay Schottenstein, American Eagle Outfitters executive chairman and chief executive officer, added, “In light of the current environment, it’s truly gratifying to see customer optimism, strong demand across channels and loyal for our brands continue. I’m amazed by the incredible momentum of Aerie, which is consistently reaching new heights and exceeding our expectations. We are seeing great progress at American Eagle, with stronger merchandise, marketing and inventory management clearly demonstrating the power and true potential of our leading brand.

“Looking forward, I have never been more optimistic about our future than I am today,” he continued. “We remain disciplined and focused on delivering profit growth through our Real Power Real Growth value creation plan, with our sights set on achieving our 2023 financial targets and generating superior shareholder returns.”

American Eagle Outfitters previously laid out plans to hit $5.5 billion in total group revenues by 2023 ($2 billion at Aerie alone), $550 million in operating income and returning the American Eagle brand to profit growth over the next three years.

It will also continue to lean into customers’ needs, meeting them where they like to shop, Foyle said. And with COVID-19 restrictions easing around the U.S., and many locations finally reopening, that’s increasingly been in person.

“We are still being cautious about how many people we allow in the store, because we’re still in the throes of COVID-19,” she said. “But customers are excited about what they’re seeing in the stores when they do go back. It’s about the magic in the store: the music, the product, the color, the excitement. We’ve been focused on entertaining the customer.”

That includes ping pong tables in Offline stores and an art gallery vibe, complete with art for sale, in the Westport, Conn., Unsubscribed store.

“We really treat each store like it’s its own community,” Foyle explained. “They plan their own events. They used COVID-19 as a time to learn — with less customers — in doing things differently.

“Not every store is created equally,” she added. “The project I’m taking on right now is to right-size our fleet and make sure we’re offering the right products for each market. We feel bullish about opening up in the right markets.”

In fact, the company plans to open roughly 50 new stand-alone Aerie stores this year, in addition to 25 or 30 Offline stores — a mix of stand-alone, side-by-sides and shops-in-shop — and possibly a third or fourth Unsubscribed location.

Meanwhile, Foyle said a mixture of styles are trending for spring, including comfortable work-from-home attire, activewear and “flirtier silhouettes.”

“It’s interesting for me now that I sit over both brands that I can really assort the business to the roots of each brand’s DNA and make sure we’re maximizing each brand’s particular strength in their business and what they do best,” Foyle said. “I’m really proud of the assortment. It continues to improve month over month and I think the customer is responding to it.”

Shares of American Eagle Outfitters, which closed up 1.35 percent to $32.98 a piece, are up more than 285 percent year-over-year. The company will report quarterly earnings on May 26.

• American Eagle Outfitters said its fiscal first-quarter revenue is on track to top $1 billion, thanks to strength at its namesake banner as well as Aerie.
• The forecast is ahead of its own estimates, the company said, as well as Street expectations for first-quarter sales.
• Executives said it is on track to double its Aerie business to $2 billion in annual sales by 2023.

By Lauren Thomas | Link to article

American Eagle Outfitters announced Wednesday that its business is pacing ahead of its expectations for the fiscal first quarter, as stimulus checks and pent-up demand are fueling sales of jeans, dressier tops and leggings.

Revenue is on track to top $1 billion, it said. Analysts had been calling for American Eagle to earn 23 cents a share on sales of $904.1 million, according to a poll by Refinitiv. The company didn’t provide a fresh earnings estimate.

Its shares jumped more than 8% in after-hours trading.

The tween-and-teen apparel retailer said demand for goods at both its namesake American Eagle business and at Aerie — which sells comfortable lingerie and loungewear for young females — has been stronger than expected. That’s in part due to external factors, including economic stimulus, renewed consumer optimism and bottled-up demand from customers, it said.

American Eagle’s denim business has been particularly strong, and shoppers have also started buying more tops, Chief Executive Jay Schottenstein said during a phone interview with CNBC.

“There’s a lot of money out there,” he said. “We think the environment for the next few years, it’s going to be a very good environment. … People will want to spend [and] people are going to want to go out and they’re going to want to get back to what was normal before.”

The trends offer another sign that people are ready to dress up again, after months of sitting around the house during the Covid pandemic in sweatpants or pajamas. Other retailers, such as Levi’s, have recently made similar comments about the popularity of denim, especially among Gen Z customers.

Within Aerie, which has been growing much faster than American Eagle, the momentum for leggings has not slowed down, said Jennifer Foyle, its global brand president. Retailers such as Lululemon and Gap’s Athleta have benefited from the leggings boom, too. These bottoms are clearly not just for yoga anymore, as more and more women are wearing them basically everywhere.

Last summer, in the thick of the health crisis, Aerie carved out a new athleisure brand called Offline by Aerie. The brand sells printed sports bras, jogger pants, graphic tees and other active gear. Although it is sold in Aerie shops, American Eagle plans to open around 25 to 30 Offline by Aerie shops this year.

Even though the field is crowded for athleisure, Foyle said the size of the market is huge. “I think there’s room for some market share for us to take,” Foyle said.

She added that the company is still on track to double its Aerie business to $2 billion in annual sales by 2023.

Additionally, American Eagle said that its profit margins have been improving thanks to it selling more items at full price and relying less on promotions.

American Eagle shares are up more than 270% over the past 12 months. It has a market cap of $5.5 billion, which is bigger than its rival and Hollister owner Abercrombie & Fitch.

American Eagle is set to present Thursday in a virtual fireside chat at J.P. Morgan’s 7th annual retail roundup. It’s expected to report financial results for the quarter ending May 1 on May 26, after the market closes.