A seven-year agreement has been renewed whereby GE Capital will continue to provide credit card programs for online, mobile app and in-store purchases at American Eagle Outfitters. The financial services provider has managed the retailer's credit card program since 1996.
As part of the program, customers can apply for and use American Eagle and Aerie credit cards at more than 1000 company-owned stores in the U.S.
Separately, shares of the apparel retailer were being pummeled on Monday after receiving a downgrade to "underperform" from "market perform" from Cowen & Company. The firm revised its price target to $11 from $14, noting that the company's current product range appears to be off-trend from what its target teenage customer base desires.
By late afternoon, shares have taken off 7.6% to $11.72.
TheStreet Ratings team rates AMERN EAGLE OUTFITTERS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMERN EAGLE OUTFITTERS INC (AEO) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."