American Eagle Outfitters (NYSE: AEO) and Abercrombie & Fitch (NYSE: ANF) both recently disappointed investors with dismal quarterly earnings reports and soft guidance for the rest of the year. Those poor results weren't surprising since inflation has been throttling sales of clothing and other discretionary goods while boosting labor and shipping costs.

However, some contrarian investors might be wondering if either one of these beaten-down apparel stocks is now a worthwhile turnaround play. Let's take a fresh look at both companies to decide.

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Source Fool.com