Specialty apparel manufacturer American Eagle Outfitters (NYSE:AEO) has been outperforming the broader markets of late because investors are bullish on its growth prospects. And we think the company’s stable inventory levels and brand recognition should drive its revenues and earnings in the near term, making it a promising investment now. So, please read on.Renowned specialty apparel designer American Eagle Outfitters, Inc. (AEO), which is headquartered in Pittsburgh, Pa., has been one of the best performing apparel retailers over the past few months, as evidenced by its record last quarter results. The company successfully navigated supply chain disruptions to boost its sales.
AEO’s total consolidated ending inventory at cost improved 32.1% year-over-year to $739.81 million as of October 31, 2021.
Shares of AEO have gained 38% in price year-to-date, outperforming the benchmark S&P 500 index’s 24.8% returns over this period. Furthermore, the stock has gained 5.4% over the past month, at a time when the S&P 500 index declined marginally.