Brooke Shields, the actress, has poured some sunshine on American Eagle Outfitters investors.
American Eagle Outfitters shares rose nearly 5% Tuesday after a photo Shields posted to her 1.2million Instagram followers. The pic shows Shields, her daughters Rowan, 18, and Grier, 15, “twinning” in new swimwear by American Eagle’s intimates label Aerie. People reported that the swimwear ensemble worn by Shields and her family is from Aerie’s Real Good Swim collection.
American Eagle’s stock ( AEO ) rose as high as 3% on Wednesday in premarket trading. The images of Shields’ and her daughters spread across social media. This likely fueled optimism about Aerie’s second-quarter sales. American Eagle’s market cap has grown by $485 million since Shields posted the information.
It’s not as if Aerie needs to be endorsed by the Shields clan to reenergize its sales.
Aerie is a new trend in apparel, taking market share from Victoria’s Secret. Analysts have stated that Aerie’s inclusive marketing, which includes nobody shaming, and the strong fit of its clothes has earned it high praise from consumers.
In the first quarter, the business’s strength was evident.
Aerie’s sales jumped 89% to $297 million year-over-year. This marked an acceleration of the 25% increase in sales that was recorded during the fourth quarter of 2020.
Bloomberg data shows that Aerie has seen a five-year streak of sales growth exceeding 20% in same-store sales. This is a record-breaking sales stretch for mall-based apparel retailers.
“We see American Eagle Outfitters’ story as a positive multiyear inflection point. Aerie’s double-digit top/bottom line profile (including high teens+ annual footage growth & two-digit comps), reaching scale at $1Billion revenues and AE brand store closings representing a positive sum of the parts catalyst (w/ 50% leases expiring before 2021-end, including 75% C mall locations), and profitability/SG&A multiyear efficiency opportunity (similarly to peer L Brands),” Matthew Bossss research note.