American Eagle Outfitters Inc

AEO remains entrenched in a Stage 4 decline with supply dominance, trading below all major EMAs and rejecting rallies at resistance. Medium- and long-term biases are firmly bearish, and sellers should participate now on rejections at the EMA zone. The primary risk is a relief bounce into the EMAs that could stall the downtrend.

• ↑Aerie Q1 sales grew 34%, leading comparable growth and margin expansion.
• ↑Total Q1 revenue $1.2B (+10% YoY), gross margin 38.2%.
• ↓American Eagle women’s bottoms revenue declined 2%, weakening core sales.