The long-term targets set by management, including 3-5% annual sales growth and a 10% EBIT margin by fiscal year 2026, appear attainable, bolstered by brand momentum and plans to capture a broader demographic. Additionally, the strategy to open approximately 100 new OFFLINE stores by aerie through fiscal year 2026 and the projection of SG&A leverage over the next three years are seen as favorable developments. However, despite these positive aspects, the stock's subsequent price movement suggests market hesitation, possibly due to profit-taking. Moreover, Lejuez notes a balanced risk/reward scenario over the longer term, with the stock trading at a forward price-to-earnings (P/E) multiple of 12x, which is below that of its competitor Abercrombie & Fitch at 16x. The hold rating also takes into account the maintained fiscal year 2024 earnings estimate of $1.83 and a raised fiscal year 2025 estimate from $1.90 to $2.07, which reflects lower SG&A growth expectations.