American Eagle in good shape

Analysts at Trefis have recently stressed how fit the American Eagle Outfitters´stock is lately.

The teen apparel retailer has continued its strong run after reporting solid fourth-quarter results, with the stock touching a 52-week high last Monday.

“In addition to a strong line-up for the spring quarter and good acceptance in key categories, including denim, wovens, tees and shorts, American Eagle's newly appointed CEO, Robert Hanson, is finding he's popular among investors, too.”

A 35% reduction in inventories was the primary catalyst behind the growth after Q4 FY11 earnings, sustained by solid sales in February that have carried forward this positive momentum, explain at Trefis.

“We also anticipate the company will begin to benefit from declining cotton prices starting this quarter, which should improve American Eagle's margins, going ahead,” analysts at Trefis advanced in a note on Wednesday.