American Eagle Outfitters

Moat components and scores (0-100): Intangible assets 70 (Aerie’s brand equity and the long‑running “Aerie REAL” positioning create meaningful customer affinity; AE remains a top jeans destination but faces shifting fashion trends). Switching costs 25 (low; apparel customers can change brands frequently). Network effects 5 (not applicable).

Cost advantage 50 (scale in sourcing, marketing, and an optimized North America distribution network help, but advantages are not unique). Efficient scale 30 (some leased locations with good co‑tenancy dynamics, but most markets can support multiple rivals).

Weighted by importance (35%/25%/10%/20%/10%), the composite is ~45–50. Risks to durability include fashion missteps, competitive intensity from fast and ultra‑fast fashion, and marketing dependency; Aerie’s momentum helps but does not fully offset structural pressures.