American Eagle is having some trouble
As reported today by Retail Dive, American Eagle Outfitters shares are dropping as third quarter same-store sales and profits have missed projections. The company generated net income of $75.8 million on revenue of $940.6 million. The problem came from same store sales rising only 2.0% vs. an expected 2.9%. And, beyond that, the American Eagle stores only grew 0.4% while their Aerie lingerie brand stores were up 21%.
The bottom line here is it wouldn't surprise me at all to see a fair amount of liquidation inventory, primarily overstock product, hitting the market from them after the holidays. We'll keep our eyes out for any developments.
The liquidation apparel market, in general, has been rebounding a bit from a low over the summer. The quantity of product available in the secondary market continues to be at pretty high levels. You can see the impact cascading through the B-Stock Sourcing Network.