logo
Plus   Neg
Share
Email

American Eagle Outfitters Holiday Season Outlook Weak, Shares Down 6%

Shares of American Eagle Outfitters Inc. (AEO) slipped 6% on extended session Tuesday after the apparel retailer's holiday season outlook fell short of Wall Street expectations.

American Eagle Outfitters third-quarter profit rose to $85.5 million or $0.48 per share from $63.7 million or $0.36 per share last year.

Analysts had expected the company to earn $0.48 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Revenues for the quarter rose 5% to $1.00 billion from $960.4 million last year. Analysts had a consensus revenue estimate of $1.02 billion for the quarter.

Comparable sales increased 8% over the comparable period ending November 4, 2017, following a 3% increase last year.

The gross margin increased 80 basis points to 39.8% of revenue, while, as a rate to revenue, SG&A rose 220 basis points to 24.8%.

CEO Jay Schottenstein commented, "I am proud to announce another outstanding performance this period for AEO, marking record sales and our first $1 billion third quarter. American Eagle and Aerie had extremely well-executed back-to-school and fall seasons, fueling strong sales across stores and double-digit growth in digital, on lower promotional activity across channels."

Looking forward to the fourth quarter, American Eagle Outfitters expects earnings of $0.40 to $0.42 per share. Analysts currently estimate earnings of $0.46 per share.

AEO closed Tuesday's trading at $19.03, down $0.49 or 2.51%, on the NYSE. The stock further slipped $1.08 or 5.68% in the after-hours trade.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Workers at Volkswagen AG's only factory in the U.S. have voted against forming a factory-wide union, dealing yet another blow to efforts by the United Auto Workers union to organize plants owned by foreign automakers. According to preliminary results announced on Friday, 833 workers at Volkswagen's plant in Chattanooga, Tennessee, reportedly voted against union representation. International Business Machines Corp. and Cúram Software, acquired by the tech giant in 2011, have agreed to pay $14.8 million to settle alleged violations of the False Claims Act, the Justice Department said in a statement. According to the DOJ, IBM and Cúram allegedly made material misrepresentations to the State of Maryland during a contract award process in 2011 and 2012. Lyrics website Genius Media Group Inc. has accused Google of copying some song lyrics directly from its website without permission, for the tech giant's search results. Genius told the Wall Street Journal that it is seeing falling traffic for the past several years as Google has been publishing lyrics in search pages on its own platform, with some of them lifted directly from the Genius website.
Follow RTT