Jim Cramer - Mad Money American Eagle Outfitters AEO-N WEAK BUY Oct 15, 2021

He expects strong lift from its Aerie division. Worth buying. They report Wednesday.

It's still good, though the stock performance may not look like it.

If the Omicron variant does not slow down the economy and the market snaps back, then buy... They had the bad luck of reporting at the same time as The GAP. AEO is a much better operation. They have enough infrastructure to handle expansion of online and offline selling.

It reports next week. It yields almost 4%. It's sick that shares have fallen so much, but the yield is safe.

Not a good pick. The stock is too cheap, which is why he bought shares today. He hasn't done a good job with this stock, but he won't give up on it.

Last night, they suspended their dividend and had a nasty quarter. She had bought this because even if earnings were cut 50%, management would protect that dividend. Earnings are down 50% and didn't protect. She feel angry and depressed. She needs to figure out when they will resume the dividend and how much.

She also owns Ross and Foot Locker in the retail space. Ross is actually up only 1% year to date, but up 40% in the past month. AEO is -40% YTD, up 50% in the last month, and Foot Locker is 15% YTD and 15% past month. The theme for all these--and why should bought them--was that the street punished these stocks so severely, expecting them to lay down and DIE and customers will never spend money again. Well, American consumers are very resilient and continue to spend. Yes, you should be in discount retailing, but this share has already shot up this month. The low-hanging fruit, the time to buy, was last summer--and people missed it. Forget 40% moves, but there will be some movement. AEO cut their dividend last quarter, so she exited. Do your homework in the retail space. Problem is that all the retail ships have risen in recent weeks and we won't see those gains again.