Zacks Investment Research downgraded shares of American Eagle Outfitters, Inc. (AEOS) from NEUTRAL to UNDERPERFORM on September 20, 2013, with a target price of $14.00.
We have downgraded our recommendation on American Eagle to Underperform based on its disappointing second-quarter fiscal 2013 performance. The quarterly results were marred by the performance of the women's collections, an intensely competitive and promotional retail backdrop as well as lower traffic. Further, the company posted a dismal outlook for the third and fourth quarters, consequently dragging down the Zacks Consensus Estimate for 2013 and 2014. Decreasing comparable store sales remain a cause of concern for the company. Moreover, American Eagle continues to face challenges on the macroeconomic front as well as on account of high dependence on outside suppliers.
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