American Eagle’s Aerie Could Be a $3 Billion Business



a group of people posing for the camera: Analyst: American Eagle’s Aerie Could Be a $3 Billion Business


© Provided by The Motley Fool
Analyst: American Eagle’s Aerie Could Be a $3 Billion Business

It’s been clear for some time that American Eagle Outfitters(NYSE: AEO) best-performing business is its Aerie lingerie chain, and though revenue for the brand was down slightly in the first quarter due to store closures necessitated by the COVID-19 pandemic, demand remained strong and far outstripped that for the American Eagle brand itself.

That sort of dynamic has persuaded at least one analyst that Aerie could become a $3 billion business over the next five years for the apparel retailer.



a group of people sitting posing for the camera: #AerieREAL models, part of the brand's effort to encourage positive body image.


© Aerie
#AerieREAL models, part of the brand’s effort to encourage positive body image.

Potent growth potential

Jefferies analyst Janine Stichter says Aerie will continue to take market share from intimate apparel rivals, particularly L Brands(NYSE: LB) ailing Victoria Secret label, which is being prepared for a spinoff. 

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