Plus   Neg

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
While reporting financial results for the first quarter, American Express Co. (AXP) on Thursday affirmed its earnings and revenue growth guidance for the full-year 2019. For fiscal 2019, the company continues to project earnings in the range of $7.64 to $8.14 per share and adjusted earnings in the... While reporting financial results for the first quarter, Honeywell international Inc. (HON) on Thursday raised its earnings and sales outlook for the full-year 2019. For fiscal 2019, the company raised its earnings outlook to a range of $7.90 to $8.15 per share from the previous guidance range of... Chipmaker Intel Corp. said it plans to exit the 5G smartphone modem business, with the announcement coming just hours after Apple Inc. and Qualcomm Inc. said they have settled their royalty dispute. The settlement includes a payment from Apple to Qualcomm, but no details were disclosed about the payment or fees. Qualcomm's shares are gaining more than 14 percent in Wednesday's trading session.
Follow RTT