American Eagle Outfitters looks cheap at 10.2x current-year consensus P/E versus 14.6x for Levi's, which just posted a whopping quarter and guide, and its Sydney Sweeney campaign is back. x.com 

American Eagle should do well on earnings, as peers Gap and Abercrombie & Fitch jumped 15% and 40% after theirs. Tariff refunds and weight loss from oral GLP-1 drugs should help, while fashion is shifting away from the COVID-era gym clothes that favored Nike and Gen Z and Gen Alpha are adopting millennial nostalgia. x.com 

American Eagle's governance now outweighs a story that is otherwise likeable. Management bonuses tied to tariff refunds are pretty terrible governance, and the company also sold part of the tariff refund at a discount. Management that brazen raises the question of how else shareholders are being shortchanged. x.com  x.com 

Abercrombie & Fitch is one of the strongest Stage 2 names outside the AI trade, a rare mix of price action, earnings and valuation. It made a power earnings gap on nearly 10x average volume after a long base, and trades at 12x forward earnings with a $6.5B market cap. x.com 

Abercrombie & Fitch looks crazy cheap at 7.4x trailing earnings with net cash equal to 23% of its value, as the company is printing money and has bought back 6.2% of its shares a year over the past five years. The downside risk is overstated. x.com  x.com 

Lululemon looks headed out of business as its customers move to Alo, and another earnings report hammered the stock. Suburban women now wear Alo, at least until they switch to the next shiny brand in a few years, which is why retail apparel is not a long-term investment. x.com