Jul. 15 at 3:43 AM
$AEO
Is there no broader concern about the continued contraction in earnings and revenue at American Eagle?
With consumers having more retail options and tariffs effectively increasing the cost of goods sold, while top line pressures are mounting.
At the same time, the company has not reduced SG&A expenses, and it recently spent over
$200 million on share buybacks — all while cash reserves are thinning.
This combination of declining fundamentals and aggressive capital allocation feels precarious?
It raises a very real question about the sustainability of the dividend.
Given the company’s cash position and the likelihood of continued earnings pressure, maintaining the dividend seems increasingly difficult — and perhaps the next item to be reduced?
They barely have the cash on hand to pay next quarters dividend?
